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Australian shares ride economic revival momentum, soar 3%

Published 09/06/2020, 11:25 am
Updated 09/06/2020, 11:30 am
© Reuters.
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* Aussie stocks join global equities rally

* Financials lead gains on ASX 200

* Iron ore major Fortescue Metals hits record high

By Pranav A K

June 9 (Reuters) - Australian shares jumped more than 3% on Tuesday, with gains propped up by miners and financial stocks, as investors continued to bet on a swift economic rebound from the damage wrought by the coronavirus pandemic.

Returning from a holiday-extended weekend, the S&P/ASX 200 .AXJO rose 2.6% to 6,153.7 by 0037 GMT, up for a sixth straight session. Earlier in the session, the index jumped 3.3% to its highest since March 9.

The benchmark caught up with a global rally that followed an unexpected jump in U.S. employment last month. MKTS/GLOB

In the United States, Nasdaq closed at a record high overnight, confirming a bull market for the index. .N

The upbeat sentiment pushed heavyweight Australian financial stocks .AXFJ up nearly 5% to their highest in nearly three months. The "Big Four" banks advanced between 4.5% and 6.5%.

The mining index .AXMM touched its highest level since Jan. 28 following a surge in Chinese iron ore futures over supply concerns after Brazil shut down a Vale complex. of BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX rose as much as 4.4% and 4.7%, respectively, while Fortescue Metals Group FMG.AX hit an all-time high.

Wesfarmers WES.AX gained 2.2% after the retail conglomerate posted an 89% surge in online sales so far this calendar year. index of energy stocks .AXEJ rose 4.69% led by Worley Ltd WOR.AX , up 11.29%, followed by Santos Ltd STO.AX , gaining 6.96​%.

The number of issues on the ASX that advanced were 1,056, while 268 declined as a 3.9-to-1 ratio favoured advancers.

New Zealand's benchmark S&P/NZX 50 .NZ50 pared early gains to trade 0.7% lower at 11,437.42, a day after declaring that the country had eliminated the coronavirus.

New Zealand this week joined a handful of countries that have re-emerged from the crisis, lifting all coronavirus-led restrictions from Tuesday except for border controls.

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