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Australian shares close higher on global stimulus hopes

Published 27/04/2020, 05:50 pm
© Reuters.
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(Updates to close)

By Soumyajit Saha

April 27 (Reuters) - Australian shares jumped on Monday, in line with global peers, as the Bank of Japan (BOJ) kicked off a week packed with major central bank meetings with a fresh round of stimulus to arrest the coronavirus outbreak's economic impact.

The S&P/ASX 200 index .AXJO ended 1.5% higher at 5,321.4, with gains being broad based. The benchmark rose 0.5% on Friday.

The BOJ on Monday pledged to buy unlimited amounts of government bonds to support the Japanese economy. action by Japan's central bank boosted hopes that other central banks will also deliver further policy support, said Michael McCarthy, chief market strategist at CMC Markets.

The U.S. Federal Reserve and the European Central Bank meet later in the week, with the latter likely to do more bond buying.

Domestic measures against the pandemic also helped lift sentiment, McCarthy said.

Australia, one of the most successful countries in fighting the pandemic, reported just five new cases of the coronavirus in the last 24 hours, and an app to help trace close contacts of patients was downloaded over a million times within five hours of launch. sub-index of healthcare stocks .AXHJ rose 2.8%, with sector heavyweight CSL Ltd CSL.AX ending 2.1% higher.

Industrial stocks .AXNJ also underpinned the bullish sentiment, with Sydney Airport Holdings SYD.AX rising 4.5%, while toll-road operator Transurban Group TCL.AX gained 3.7%.

Financial stocks .AXFJ , however, ended slightly lower after falling nearly 2% earlier as the country's third-largest lender, National Australia Bank NAB.AX , reported a 51% plunge in first-half profit and cut its dividend. the Tasman sea, New Zealand's stock market .NZ50 was closed for a holiday.

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