Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Australia shares snap 5-day losing streak on Trump optimism, NZ up

Published 02/03/2017, 05:19 pm
Updated 02/03/2017, 05:20 pm
© Reuters.  Australia shares snap 5-day losing streak on Trump optimism, NZ up

© Reuters. Australia shares snap 5-day losing streak on Trump optimism, NZ up

(Updates to close)

March 2 - Australian shares snapped a five-day losing streak with a sharp bounce on Thursday, as sentiment was supported by a combination of stronger global manufacturing activity and a pledge by U.S. President Donald Trump to boost economic growth.

In his first speech to the Congress, Trump adopted a less combative tone and flagged a surge in fiscal stimulus, propelling Wall Street stocks sharply higher. The Dow Jones Industrial Average .DJI blasted through the 21,000-point mark for the first time. .N helped push the S&P/ASX 200 index .AXJO up 1.3 percent, or 71.804 points, to 5,776.60 at the close of trade, led by financials and material stocks.

Global markets have been rattled in the past month or so as investors feared Trump's protectionist threats would hurt global growth, while lack of clarity around economic policies kept risk assets on the defensive.

"Today they're just bouncing back a little bit and of course we have a very very strong lead from Wall Street. So the whole market is carried higher by the fact that there is a lot of buying out there today," said Christopher Conway, head of research and trading at Australian Stock Report.

The "Big Four" banks rose between 1 to 1.3 percent.

Mining giant South32 S32.AX scored the biggest gain on the benchmark index, adding 9.2 percent.

The ASX 300 Metals and Mining index .AXMM rose 3.3 percent, snapping a 6-day losing streak, with the world's biggest miner by market capitalization BHP Billiton (LON:BLT) BHP.AX surging 3.3 percent.

The gold index .AXGD climbed 0.5 percent, despite lower bullion prices. stocks had fallen quite sharply in the previous two sessions on almost no news. There was some expectation that Donald Trump would say something negative for gold, so investors sold down Australian gold equities," Conway said.

On the losing ledger, telecom stocks ended lower, with sector giant Telstra TLS.AX extending losses from the previous session, finishing 1.5 percent lower, after trading ex-dividend.

New Zealand's benchmark S&P/NZX 50 index .NZ50 crept up 0.4 percent, or 27.05 points, to finish the session at 7,175.83, supported by financials and utilities.

Westpac Banking Corp WBC.NZ gained 1.8 percent, while Mercury NZ Ltd MCY.NZ rose 1.6 percent.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.