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Australia shares jump 1%, led by gains in mining and financial stocks

Published 19/01/2021, 02:00 pm
© Reuters.
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* Bingo jumps around 24% after on $1.76 bln buyout offer

* Rio says China industrial activity back to pre-COVID-19 levels

* Tyro expects terminal outages issues resolved by week's end (Recasts and updates prices)

By Soumyajit Saha

Jan 19 (Reuters) - Australian shares rose more than 1% on Tuesday, on the back of gains among financial and mining stocks, with waste management firm Bingo Industries being the biggest gainer after it received a buyout offer.

The S&P/ASX 200 index .AXJO was up 1.2% at 6,741.4 by 0208 GMT. The benchmark closed 0.8% lower on Monday.

Bingo Industries BIN.AX soared 23.7% after a private equity firm made a A$2.29 billion ($1.76 billion) play for the company. miner Rio Tinto (LON:RIO) RIO.AX reported a 2.4% rise in fourth-quarter iron ore shipments, a day after data showed China's economy was one of the few in the world to grow over 2020. said industrial activity in China is now at pre-coronavirus levels, a boon for miners looking to their top export destination to drive growth as the global economic recovery stumbles ahead.

BHP Group BHP.AX , the world's top miner, edged nearly 1% higher, mirroring gains among the broader mining sector .AXMM . BHP will report its second-quarter production results on Wednesday.

Financials .AXFJ rose 1.5%, with Westpac Banking Corp WBC.AX up 2.4%, leading gains among the country's four biggest banks.

"A lot of the early movement seems to be a bounce back from yesterday's losses in the absence of direction from the U.S. markets and lack of big news on the domestic fight against the virus," said James Tao, market analyst at CommSec.

Australia recorded another day with no new locally acquired cases on Tuesday. of Tyro Payments TYR.AX , while not a constituent of the ASX200, surged around 25% as the payments processor expects to resolve outages that have plagued its terminal fleet since early January and caused a near third plunge in its share price. It also rebuffed a short seller report last week.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 fell 0.3%, hurt by utility and healthcare stocks.

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