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Australian shares gain on Sino-U.S. trade hopes; NZ down

Published 24/07/2019, 12:34 pm
© Reuters.  Australian shares gain on Sino-U.S. trade hopes; NZ down
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* Aussie benchmark hits more than 11-1/2-year high

* Westpac brings forward next RBA rate cut forecast to Oct

* Regis Resources down as much as 10%, worst performer on index

By Niyati Shetty

July 24 (Reuters) - Australian shares rose on Wednesday, tracking gains on Wall Street as investors cheered some headway in stalled trade negotiations between the United States and China.

The S&P/ASX 200 index .AXJO climbed 0.7%, or 50.0 points, to 6,774.60 by 0147 GMT, hitting its highest since November 2007. The benchmark rose 0.5% on Tuesday.

U.S. stocks approached record highs on Tuesday after Bloomberg reported that the country's senior officials were headed to Shanghai on Monday for face-to-face trade talks with their Chinese counterparts. .N

Adding to the optimism of a possible deal, White House economic adviser Larry Kudlow called it a "good sign". have been eagerly awaiting this next step in the U.S.-China trade war and optimism will grow that this meeting could signal a key turning point in securing a final deal," said Edward Moya, senior market analyst at OANDA.

Financials .AXFJ gained up to 1%, with Westpac Banking Corp WBC.AX adding 1.7% and National Australia Bank NAB.AX hitting a more than 10-month high.

Investors have also been scooping up stocks in recent days on expectations of monetary policy easing by the world's major central banks, the U.S. Federal Reserve and the European Central Bank, this month.

Meanwhile, Westpac on Wednesday brought forward the timing of its forecast for the next Reserve Bank of Australia rate cut to October from November, citing unemployment and inflation pressures. central bank has trimmed the cash rate twice to 1% since June.

Oil prices marched upward as Middle East tensions escalated further after the United States said it shot down a second Iranian drone, giving a boost to energy stocks .AXEJ . O/R

Woodside Petroleum WPL.AX advanced 0.8% and Oil Search OSH.AX was up 0.6%.

The metals and mining index .AXMM gained as heavyweights BHP Group BHP.AX , Rio Tinto (LON:RIO) RIO.AX and Fortescue Metals Group FMG.AX each climbed 0.9%.

Gold stocks .AXGD , however, declined 1% as bullion prices fell to their lowest in a week on Tuesday. GOL/

Regis Resources RRL.AX slumped as much as 10% and was the worst performer on the Australian benchmark after brokers downgraded ratings and cut price targets for the mining company. Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.36%, or 39.40 points, to 10,827.85.

Retirement village operator Ryman Healthcare RYM.NZ slipped 2.9% and dairy products maker a2 Milk ATM.NZ dropped 2.6%.

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