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Australia shares rise on hopes for easing U.S.-China dispute; NZ up too

Published 12/12/2018, 12:31 pm
Updated 12/12/2018, 12:40 pm
© Reuters.  Australia shares rise on hopes for easing U.S.-China dispute; NZ up too
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* Healthcare stocks lead gains for a second day

* Metal shares up on higher global prices

* Gold stocks snap 6-day run of advances

By Aby Jose Koilparambil

Dec 12 (Reuters) - Australian shares advanced on Wednesday, tracking most global markets on hopes for progress in resolving the trade war between China and the United States.

The S&P/ASX 200 index .AXJO was up 0.6 percentage or 30.60 points to 5,605.40 at 0044 GMT.

The healthcare segment was the strongest for a second straight session, with the index .AXHJ up to 1.6 percent in early trade before gains were pared. Sigma Healthcare Ltd SIG.AX , up over 3 percent, was the best performer.

European shares closed higher on Tuesday and Wall Street ended marginally lower after a report that China is moving to cut import tariffs on American-made cars. report came after Chinese Vice Premier Liu He exchanged views on the next stage of trade talks with U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer.

In an interview with Reuters, U.S. President Donald Trump said talks were taking place with Beijing by phone and he would not raise tariffs on Chinese imports until he was sure about a deal. the U.S.-China rift remains a key risk.

"People are more confident as China and the U.S. are talking, but they are still not convinced that a resolution would be possible within the stipulated 90-day period. That is a handbrake on positivity," said Greg McKenna, founder of consultancy McKenna Macro in Sydney.

Energy stocks had gains in morning trade. Oil and gas explorers Beach Energy BPT.AX climbed as much as 2.9 percent and Santos STO.AX 2.2 percent.

Oil prices had risen over $1 a barrel earlier in Tuesday's session after Libya's National Oil Company (NOC) declared a force majeure on exports from the country's biggest oilfield. O/R

Metals and mining stocks, except gold ones, advanced as prices of copper and most other base metals edged higher.

Heavyweights BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX put on as much as 1.1 percent and 1.3 percent, respectively.

Gold stocks came under pressure after a six-session run of gains. Biggies Evolution Mining EVN.AX and Newcrest Mining NCM.AX fell more than 2 percent and 1 percent, respectively.

Financial stocks moved up with the Big Four banks - the top lenders - all strengthening

New Zealand's benchmark S&P/NZX 50 index .NZ50 rose as much as 0.83 percent, its biggest intraday percentage gain in nearly two weeks.

Major online marketplace Trade Me Group TME.NZ boosted the benchmark, rising as much as 4.3 percent to a record high after agreeing to be acquired by a British private equity firm for NZ$2.56 billion ($1.76 billion). L3N1YG4LX

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