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Australian stocks climb after cenbank cuts interest rates

Published 01/10/2019, 05:48 pm
Updated 01/10/2019, 05:50 pm
© Reuters.  Australian stocks climb after cenbank cuts interest rates

* Healthcare stocks rise as rate cut weakens local dollar

* Consumer-focused stocks among top boosts

(Updates to close)

Oct 1 (Reuters) - Australian shares had their best day in almost a month on Tuesday after the country's central bank eased monetary policy, with rate-sensitive sectors driving the late gains.

The Reserve Bank of Australia cut rates for a third time this year to stimulate the sluggish economy as expected, and signalled that it may be prepared to cut further if needed. move sent the benchmark S&P/ASX 200 index .AXJO 0.8%, or 54.5 points, higher to 6,742.8.

Real estate stocks REA Group REA.AX and Domain Holdings Australia DHG.AX jumped 1.9% and 6.2%, respectively.

Record low interest rates have boosted home prices, with data earlier in the day showing that home prices enjoyed their biggest monthly jump in 2-1/2-years in September with the dominant markets of Sydney and Melbourne bouncing strongly. stocks rose, with the country's two biggest airlines Qantas Airways QAN.AX and Virgin Australia VAH.AX closing 2.4% and 3.1% higher following the rate cut.

Elsewhere, the country's top two lenders Commonwealth Bank of Australia CBA.AX and Westpac Banking Corp WBC.AX ended higher after trading in a thin range for most of the session.

The export-driven healthcare sector .AXHJ climbed, with heavyweight CSL Ltd CSL.AX rising 2% as the local currency weakened to a one-month low following the rate cut. AUD/

Across the Tasman sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 closed 0.7% higher at 10,996.99.

Heavyweight a2 Milk Company ATM.NZ firmed 1%.

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However, local listings of Westpac Banking Corp WBC.NZ and Australia and New Zealand Banking Group ANZ.NZ weakened.

Earlier in the day, the Reserve Bank of New Zealand said its final decision on a proposal to increase the amount of capital banks must hold will be announced in December.

The banks have said in the past they would scale back or sell their businesses in the country if the RBNZ pushes ahead with the plans.

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