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Australia shares hit over 11-year high as global trade worries ease; NZ up

Published 11/06/2019, 04:39 pm
Updated 11/06/2019, 04:40 pm
© Reuters.  Australia shares hit over 11-year high as global trade worries ease; NZ up
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* Financials gain for 5th straight session

* Healthcare index closes up 3.5% to over 9-mth high

* Vocus up 8.9% on $2.10 bln AGL Energy offer (Updates to close)

June 11 (Reuters) - Australian shares gained on Tuesday, buoyed by financials and resource-based stocks, as the U.S. decision not to impose tariffs against Mexico eased some concerns about global trade tensions.

The S&P/ASX 200 index .AXJO closed up 1.6%, or 102.4 points, to 6,546.30, its highest level since December 2007. The benchmark was closed on Monday for a holiday, but gained for a fifth straight trading session.

Mexico on Friday agreed to curb the flow of Central American migrants across the border, leading to the United States suspending the proposed 5% tariffs on Mexican goods. U.S.-Mexico agreement eased concerns that the tariff spat would further depress the global economy, and in turn raised hopes that U.S. President Donald Trump might also seal a deal with China.

Meanwhile, China on Monday said it would boost funding support for major investment projects to support the cooling economy. metals and mining index .AXMM advanced 1.3% boosted by a rise in iron ore and base metal prices. IRONORE/ MET/L

Global miners BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX rose 2.3% and 2.6%, respectively, while iron ore miner Fortescue Metals Group FMG.AX added 3.2%.

Financials .AXFJ gained for a fifth straight session, supported by hopes that last week's rate cut by the Reserve Bank of Australia's would shore up the slowing economy.

Investors also expect the U.S. Federal Reserve to speed up rate cuts this year after the shocking U.S. jobs data released on Friday. stocks .AXHJ , which have large exposure to the U.S. market, gained 3.5% to hit a more than 9-month closing high.

Index heavyweight CSL Ltd CSL.AX advanced 4.3%, while medical device maker Cochlear Ltd COH.AX rose 3%.

Telecom firm Vocus Group VOC.AX gained 8.9% and was among the best performers on the Australian benchmark following a fresh A$3.02 billion ($2.10 billion) offer from AGL Energy AGL.AX . stocks .AXGD declined 2%, with Northern Star Resources NST.AX slipping 4.2% and Regis Resources RRL.AX ending down 4.4%. As risk sentiment improved, gold prices fell on Monday after investors moved away from safe haven assets. GOL/

New Zealand's benchmark S&P/NZX 50 index .NZ50 ended up 1.1% or 111.54 points to 10,139.15.

Data released earlier in the day showed the Pacific nation's manufacturing sales volumes rose 2.0% in the first quarter, driven by a lift in volumes of dairy and meat products. Milk SML.NZ added 1.1%, while a2 Milk Company ATM.NZ rose 3.2% and was the top gainer on the benchmark index.

($1 = 1.4393 Australian dollars)

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