Australian shares jump as c.bank chief spurs economic recovery hopes

May 28 (Reuters) – Australian shares jumped on Thursday to a two-and-a-half-month high, supported by financials after comments from the central bank governor bolstered hopes of a quicker-than-expected economic recovery from the sharp coronavirus-driven downturn.

Reserve Bank of Australia Governor Philip Lowe said better-than-feared health outcomes from the COVID-19 pandemic in Australia suggested the economic downturn would likely not be as severe as earlier thought.

Australia has so far been successful in curbing the spread of the coronavirus with total cases slightly above 7,100 and 103 deaths, helping it reopen its economy earlier than expected.

Lowe said employment in the June quarter might have fallen by only 15% from a year earlier, less than the previous 20% estimate, easing qualms regarding unemployment in the country.

The SP/ASX 200 index was up 2.15% at 5,899.3 by 0048 GMT, after hitting its highest level since March 11 earlier in the day. ​

Financial stocks rose 4.36%, led by Credit Corp Group Ltd, which climbed 8.33%, and Hub24 Ltd, which added 7.7%.

The ASX 300 metals and mining index rose 1.65%, with shares of Mount Gibson Iron Ltd and Bellevue Gold Ltd gaining 7.03% and 5.56​%, respectively.

Technology stocks advanced 1.32%. Nearmap Ltd rose 19.79% and Afterpay Ltd added 2.78%.

Gold stocks gained 0.92%, led by Bellevue Gold Ltd , up 5.56%, and Resolute Mining Ltd, up 4.98​%.

The number of issues on the ASX that advanced were 914 while 308 declined as a 3-to-1 ratio favoured advancers.

In New Zealand, the benchmark SP/NZX 50 index fell 0.23% to 11,023.2.

The top percentage losers on the index were SKY Network Television Ltd, down 8.09%, followed by Sanford Ltd , losing 5.96%, and Goodman Property Trust, down 5.22%. (Reporting by Shreya Mariam Job in Bengaluru; Editing by Subhranshu Sahu)