🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Australia shares gain on healthcare, financial stocks; NZ hits record high again

Published 02/12/2019, 12:35 pm
Updated 02/12/2019, 12:42 pm
© Reuters.  Australia shares gain on healthcare, financial stocks; NZ hits record high again
AXJO
-
CSL
-
OSH
-
NCM
-
WOR
-
CL
-
AXEJ
-
AXHJ
-
AXFJ
-
NZ50
-
AVH
-
MEZ
-
MNW
-

* Australia healthcare index scales new peak

* Positive home prices data cheer market

* Gold firms drag metal stocks

By Aby Jose Koilparambil

Dec 2 (Reuters) - Australian shares kicked off the month on a positive note on Monday, aided by healthcare and financial stocks, as investors cheered strong domestic home prices data while shrugging off concerns over fresh uncertainty around the Sino-U.S. trade deal.

The S&P/ASX 200 index .AXJO gained 0.5% to 6,883.30 by 0037 GMT. The benchmark had risen a tad over 2% last week in its biggest weekly gain since early February.

The healthcare sub-index .AXHJ gained as much as 1.2% to a record high, with medical tech firm Avita Medical Ltd AVH.AX rising up to 4% to be the top percentage gainer, while benchmark heavyweight CSL Ltd CSL.AX climbed about 2%.

"One of the most appealing factors about healthcare stocks is that earnings tend to be very predictable for them. Also, one of the major drivers in Australia for healthcare is the ageing demography and the players who are into aged care services stand to benefit a lot," said James McGlew, executive director of corporate stock broking at Argonaut.

The financials index .AXFJ tacked on up to 0.7%, with all the 'Big Four' lenders gaining between 0.2% and about 1%, after home prices data released before market-opening providing the impetus.

Australian home prices rose at a breakneck pace in November as record-low interest rates and looser lending standards fuelled demand in a sector that has gone from bust to boom since mid-year. was the fifth straight month of gains and a potential boon for consumer spending power after a two-year downturn chipped away at household wealth and confidence.

"The signals are that the lower interest rates are finally giving some stimulation to the domestic housing markets," added McGlew.

Meanwhile, investors looked past the new uncertainty around a trade deal between the United States and China.

A Sino-U.S. trade deal was now "stalled because of Hong Kong legislation", news website Axios reported on Sunday, citing a source close to U.S. President Donald Trump's negotiating team. energy sub-index .AXEJ was the main drag on the benchmark as oil struggled, with the U.S. crude dropping more than 4% on Friday amid fresh trade tensions and record high U.S. crude production.

Worley Ltd WOR.AX fell more than 2%, while Oil Search Ltd OSH.AX declined up to 0.5%.

In the metals and mining space, gold stocks fell the most with Newcrest Mining Ltd NCM.AX dropping over 2% in early session.

The Australian benchmark had scaled record highs last week on prospects of an initial trade deal between Washington and Beijing and strong U.S. data, which assuaged concerns of an economic slowdown.

New Zealand's benchmark S&P/NZX 50 index .NZ50 also rose 0.4% to the day's highest level of 11,359.94 to scale another fresh peak. The benchmark is set to gain for a sixth consecutive session.

Energy firms Trustpower Ltd TPW.NZ and Meridian Energy Ltd MEL.NZ were the top percentage gainers on the benchmark, gaining over 3% and about 2%, respectively.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.