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Australia shares rise on steady commodities, Wall Street rebound

Published 26/03/2021, 12:21 pm
© Reuters.
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* Miners gain as Chinese iron ore futures hold firm; FMG, RIO up

* Energy stocks rise more than 1% as oil prices stabilise

* AMP jumps 5% as co reiterates that CEO has not resigned

By Vasudha Kaukuntla

March 26 (Reuters) - Australian shares climbed on Friday, lifted by miners and oil and gas explorers as commodity prices stabilised, while an overnight rebound in Wall Street on signs of economic progress also lent support.

The S&P/ASX 200 index .AXJO was up 0.5% at 6,822 by 0108 GMT. The benchmark closed 0.2% higher on Thursday.

U.S. stocks rose in a late-day rally as investors bought stocks likely to do well in the recovery and picked up beaten-down shares in anticipation that the economy grows at its fastest pace in decades this year. .N

S&P 500 E-minis futures EScv1 rose 0.1% in early Asian trade, while Nikkei futures NKc1 gave up early gains to dip 0.1%.

Local markets were being cautiously optimistic, given the strong recovery in the U.S. and Chinese markets, while they are shrugging off rising COVID-19 cases in Europe for now, Nick Twidale, chief executive officer of APAC for FP Markets, said.

"Conversely, if there is a downturn in these economies combined with the bad situation in European countries, then there may be a sharp correction," he added.

In Australia, miners .AXMM led the gains after climbing nearly 1% as Chinese iron ore futures DCIOcv1 rose amid worries of supply shortages. Rio Tinto (LON:RIO) RIO.AX and Fortescue Metals Group FMG.AX advanced 1.5% each.

Energy stocks .AXEJ climbed up to 1.1% as oil prices stabilised after a sharp drop overnight. Sector heavyweight Woodside Petroleum WPL.AX rose 2.4% while Santos STO.AX gained more than 1%.

The financial sub-index .AXFJ rose 0.5%, lifted by embattled wealth manager AMP Ltd AMP.AX , which clawed back from previous session's losses to climb 5%. AMP shares on track for best session since Feb. 26 after the company reiterated that Francesco De Ferrari (NYSE:RACE) would remain as its chief executive officer. New Zealand, the benchmark S&P/NZX 50 index .NZ50 traded down 0.2% at 12,367.87, with retirement village operator Summerset Group SUM.NZ leading the losses.

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