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Australia shares hit record high on trade deal optimism; NZ up

Published 14/01/2020, 05:08 pm
© Reuters.  Australia shares hit record high on trade deal optimism; NZ up
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* Positive China trade data improves risk sentiment

* Energy stocks buoyed by higher oil prices

* Drugmaker CSL off record high

* Resolute Mining in talks with EMR Capital for gold mine sale (Updates to close)

By Nikhil Subba

Jan 14 (Reuters) - Australian shares closed at a record high on Tuesday, with miners and energy stocks lifting the benchmark, a day before the signing of a trade deal between Washington and Beijing.

The S&P/ASX 200 index .AXJO ended about 0.9% higher at 6,962.20 at the close of trade, following a 0.4% weaker finish on Monday.

The signing of the interim deal will mark a major de-escalation of the 18-month trade dispute between the world's two largest economies that has roiled global markets and stoked worries about a global recession.

Adding to the positivity, the U.S. Treasury Department dropped its designation of China as a currency manipulator, which was widely seen as an act of goodwill. decision is a symbolic gesture ahead of tomorrow's signing," analysts at DBS Group Research said in a note.

Washington in August accused Beijing of manipulating its currency after China let the yuan drop to its lowest point in more than a decade.

Risk sentiment also received a boost from strong Chinese economic data on Tuesday showing rising exports and imports in December. the news supporting global growth expectations, Australia's miners .AXMM , the country's most export-focused sector, climbed 1.2% at close, helped by a rise in iron ore prices.

The world's largest miner BHP Group BHP.AX ended 1.3% up, while peer Rio Tinto (LON:RIO) RIO.AX advanced 1.9% to close at its highest since July 5.

December quarter production season for Australian miners kicks off on Thursday.

Resolute Mining Ltd RSG.AX ended 4% higher after the gold miner said it was in advanced talks with private equity firm EMR Capital Management for the sale of its Ravenswood gold mine in Queensland for up to A$300 million ($206.94 million). stocks .AXEJ climbed nearly 1% buoyed by a rise in oil prices, ahead of the deal between U.S. and China, the world's top oil consumers.

Industry heavyweights Woodside Petroleum WPL.AX and Santos STO.AX ended 0.7% and 0.9% higher, respectively.

Financials .AXFJ , which comprise some of the biggest companies in the country, finished up 0.6% at its highest since Dec. 17, with three of the 'big four' banks in the positive territory.

Drugmaker CSL CSL.AX which closed up about 0.7% after hitting a record high earlier in the day, helped the healthcare sub-index .AXHJ advance about 0.8%.

Meanwhile, New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.7% to finish the session at 11,625.13.

Software maker Gentrack Group GTK.NZ strengthened 2.9% at close while energy retailer Contact Energy CEN.NZ rose 2.8%. ($1 = 1.4497 Australian dollars)

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