Australia shares rise on economic recovery hopes

Published 17/06/2020, 11:52 am
© Reuters.
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By Soumyajit Saha

June 17 (Reuters) - Australian shares gained on Wednesday as hopes of a global economic recovery rose after U.S. retail sales data in May showed a record jump and boosted Wall Street overnight.

The S&P/ASX 200 index .AXJO rose 0.36% to 5,963.5 in early trade, on track to rise for the second straight session.​ The index is down 11.1% so far this year.

Overnight, the U.S. Dow Jones Industrial Average .DJI rose 2.04%, the S&P 500 .SPX .SPX gained 1.90%, and the Nasdaq .IXIC jumped 1.75%.

While U.S. retail sales jumped by a record 17.7% in May, news that Washington is preparing a $1-trillion infrastructure package to jump-start the economy also aided sentiment. domestic data during market hours on Tuesday showed a pickup in Australian payrolls, and the country's central bank said the economic downturn could be shallower than earlier expected. Energy Ltd VEA.AX was among the top gainers on the benchmark index as brokerage Jefferies raised its earnings outlook for the company. ASX 200 Energy index .AXEJ rose 0.12% as oil prices jumped overnight on economic recovery hopes and a raised oil demand forecast by the International Energy Agency for 2020. O/R

Technology stocks .AXIJ rose 1.53% led by WiseTech Global Ltd WTC.AX , up 3.41%.

The number of issues on the ASX that advanced were 665 while 365 declined as a 1.8-to-1 ratio favored advancers.

Mining stocks .AXMM were flat, while financial stocks .AXFJ were marginally lower.

Chinese iron ore futures DCIOcv1 on the Dalian Commodity Exchange fell 1%.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 rose 1.78%, with top percentage gainers A2 Milk Company ATM.NZ up 4.4%.

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