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Energy stocks pull Australian shares higher, NZ also rises

Published 05/09/2019, 12:34 pm
Updated 05/09/2019, 12:40 pm
© Reuters.  Energy stocks pull Australian shares higher, NZ also rises
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* Energy stocks gain more than 2%

* BHP, Whitehaven Coal trade ex-div

* Myer Holdings rises after strong results

By Shriya Ramakrishnan

Sept 5 (Reuters) - Australian shares rose on Thursday, tracking a global rally after a series of positive headlines out of Britain and Hong Kong and pushed higher by the energy stocks on a rally in crude oil prices.

The S&P/ASX 200 index .AXJO rose 1% to 6,616.2 by 0158 GMT, after falling 0.3% on Wednesday.

Equity markets worldwide rebounded after upbeat economic data from China, easing political tensions in Hong Kong and another Brexit delay provided some respite for investors worried about the global economic growth outlook.

Also supporting sentiment in Asia was news the United States and China had agreed to ministerial-level trade talks in Washington in coming weeks. a drop in geopolitical risk premium comes as a welcome relief...with the omnipresent trade war clouds looming ominously over the market threatening to come thundering down at any time, the air remains thick with caution," Stephen Innes, Asia Pacific Market Strategist at AxiTrader said.

Energy stocks .AXEJ gained more than 2%, after oil prices jumped more than 4% overnight, boosted by positive economic data from China. O/R

However, oil prices dipped slightly in early Asian trade, after an industry report revealed a surprise buildup in U.S. crude stockpile last week.

Shares of Australia's biggest oil and gas explorer Woodside Petroleum WPL.AX rose as much as 2.7% to mark its best day in more than two months, while its peer Oil Search OSH.AX advanced 2.8%.

Whitehaven Coal WHC.AX bucked the sector trend to fall about 9%, as shares of the country's biggest independent coal miner traded ex-dividend. financial stocks .AXFJ also climbed 1.3%, with top lenders Westpac Banking Corp WBC.AX and Australia and New Zealand Banking Group ANZ.AX rising 1.3% and 1.4%, respectively.

Meanwhile, Aussie shares of British lender CYBG Plc CYB.AX slumped 19.1% to hit a record low, after the company said it expected to increase its provisions. metals and mining sector .AXMM ticked up 0.4%, buoyed by strong iron ore futures, with Rio Tinto (LON:RIO) RIO.AX and Fortescue Metals Group FMG.AX adding between 2.4% and 3.9%.

However, capping gains in the mining sector index was a 1.3% fall in BHP Group BHP.AX , the world's biggest miner and Australia's largest firm by market value, after it traded ex-dividend.

In the retail space, Myer Holdings MYR.AX jumped 11.4%, after the department store operator swung back to an annual profit, supported by its turnaround strategy of ditching low-margin brands and a series of cost cuts. the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.7% to 11,089.16, with dairy firm a2 Milk Company ATM.NZ and Fletcher Building FBU.NZ leadings with gains of 2.3% and 2.6%, respectively.

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