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Australia shares gain as miners ride iron ore rally, rival drops forecast

Published 03/12/2020, 11:00 am
Updated 03/12/2020, 11:06 am
© Reuters.
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BHP
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MQG
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RIO
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* BHP hits over 10-mth high, Rio highest since 2008

* Fortescue Metals hits record high

* Macquarie slips on Waddell & Reed Financial buy for $1.7 bln

* Qantas says will reach 68% of pre-COVID capacity in Dec

Dec 3 (Reuters) - Australian shares rose on Thursday as miners almost single-handedly lifted the index, buoyed by a rally in iron ore prices and a downgraded full-year iron ore forecast by Brazilian mining rival Vale.

Rising iron ore prices owing to a strong demand for the steel-making ingredient in China, Australia's top trading partner, had Aussie miners .AXMM extending gains into a third session, jumping 3.4% to over three months high. IRONORE/

BHP Group BHP.AX hit an over 10-month high, Rio Tinto (LON:RIO) RIO.AX surged to its highest since May 2008, and Fortescue Metals Group FMG.AX hit a record high on rising iron ore prices and lowered full-year iron ore forecast by Brazilian rival Vale SA VALE3.SA , expected to benefit the Aussie miners. S&P/ASX 200 index .AXJO rose 0.4% to 6,616.8 by 2330 GMT, on track for its third straight gain session.

Among losers, financials .AXFJ were down 0.3% with three of the four top banks trading in the red.

Conglomerate Macquarie Group MQG.AX declined 0.7% on acquisition of U.S.-based investment management firm Waddell & Reed Financial Inc WDR.N for $1.7 billion. Airways QAN.AX said the reopening of Australian state borders would boost its financial position and allow it to return to 68% of pre-pandemic domestic capacity in December, and nearly to 80% in the March quarter. However, shares slipped up to 1.1%. the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 edged lower, after advancing up to 0.4% in the early trade.

Gains in financials and utilities were offset by healthcare firms.

Meanwhile, New Zealand's building consents in October rose a seasonally adjusted 8.8%, compared with a 3.6% rise in the previous month.

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