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Australia shares track Wall Street higher; NZ down

Published 27/12/2019, 12:46 pm
Updated 27/12/2019, 12:49 pm
© Reuters.  Australia shares track Wall Street higher; NZ down

* Firm oil prices lift energy stocks

* Strong gold prices boost mining sector

* Utility sector among top losers

By Nikhil Subba

Dec 27 (Reuters) - Australian shares rose slightly on Friday in light year-end holiday trade, tracking Wall Street's gains overnight on optimism over an interim U.S.-China trade agreement.

The S&P/ASX 200 index .AXJO rose 0.2% to 6,808.1 by 0036 GMT, after a 0.1% gain on Tuesday. Markets were closed on Wednesday and Thursday on account of Christmas and Boxing Day.

All three Wall Street indexes settled higher on Thursday, boosted by hopes that Washington and Beijing would soon ink a trade deal and gains in Amazon.com AMZN.O after a report signalled robust online holiday sales in the United States.

"What we saw overnight in the United States was a continuation of positive momentum associated with trade optimism," said Ryan Felsman, senior economist at CommSec.

"A large part of that was on the back of commentary from the Chinese commerce ministry yesterday which basically affirmed that the trade deal with the U.S. would be signed in January."

Increased optimism over global trade, along with a report of lower U.S. crude inventories, helped oil prices rise to their highest level in more than three months on Thursday. O/R

This helped energy stocks .AXEJ climb 0.4% to a one-week high, with oil and gas major Woodside Petroleum WPL.AX gaining 0.5% to its highest since Dec. 20, while index heavyweight Santos STO.AX strengthened 0.6%.

Technology stocks .AXIJ rose the most, adding more than 1% in their best intraday percentage gain since Dec. 17. Nearmap NEA.AX advanced about 2%, while Afterpay Ltd APT.AX rose nearly 5% to an over three-week high.

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Gold stocks .AXGD climbed as much as 2.2% to a four-week peak, as bullion prices surged to a near-two month high on Thursday. This helped the broader mining sector .AXMM rise more than 1% to its highest since Dec. 18.

Gold producer Resolute Mining RSG.AX jumped nearly 7% to a three-week high, while peer OceanaGold Corp OGC.AX surged as much as 7.2% in its best intraday session since Aug. 26.

Among losers, the utility sector .AXUJ slipped as much as 0.8%, with electricity and gas retailer AGL Energy AGL.AX declining nearly 1%.

New Zealand's benchmark S&P/NZX 50 index .NZ50 slipped 0.3% to 11,608.95.

Adventure goods retailer Kathmandu Holdings KMD.NZ shed 2.4% to hit its lowest in more than a week, while electricity retailer Mercury NZ MCY.NZ lost nearly 3% in its biggest intraday drop since Nov. 26.

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