🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Australia shares hit near 10-month closing high on faster recovery projection

Published 17/12/2020, 04:52 pm
© Reuters.
AXJO
-
BHP
-
RIO
-
RIO
-
AXMM
-
AXFJ
-
AXIJ
-
NZ50
-
APT
-

* Benchmark index hits highest close since late February

* Australian economy seen growing 4.5% in 2021 - Treasurer

* Afterpay hits all-time closing high for fourth session

* New Zealand GDP grows 14% in Q3, beats expectations

(Updates to close)

By Sameer Manekar

Dec 17 (Reuters) - Australian shares jumped on Thursday to their highest close in nearly 10 months, as projection of a faster economic recovery next year, and strong November employment data lifted sentiment.

The S&P/ASX 200 index .AXJO settled 1.2% higher at 6,756.70, its highest close since Feb. 25, and marking a second straight session of gains.

Australia's treasurer, Josh Frydenberg, said the economy would grow 4.5% in 2021, up from a previous estimate of 4.25% made just two months before, signalling a quicker recovery from the first recession in three decades. the projection, November employment figures beat expectations, pushing the jobless rate lower in a sign that monetary and fiscal stimulus was bringing the country back on its feet after the pandemic blows. said resource exports were expected to rise 5% in 2021/22 even with rising tensions with China, the country's largest trading partner. Australia placed to benefit from rising commodity demand in 2021 as the world's recovery gathers pace and the local economy recovers strongly, Australian equity markets head into the year-end in rude health," said Jeffrey Halley, a senior market analyst at OANDA.

Heavyweight miners .AXMM and financials .AXFJ were the top boosts, adding 1.7% and 1%, respectively. All "Big Four" banks ended in positive territory, while mining giants BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX gained about 1.8% each.

Tech stocks .AXIJ continued their winning streak, closing at a record level. Afterpay APT.AX was the biggest gainer in the index, marking a record closing level for the fourth session in a row. New Zealand, the benchmark S&P/NZX 50 index .NZ50 added 0.5% to close at 12,888.77.

The economy grew a record 14% in the third quarter, and 0.4% annually, beating expectations on both counts as industrial and commercial activity rebounded from the pandemic lows.

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.