Australian, NZ shares gain on prospects of swift economic rebound
June 3 (Reuters) – Australian shares rose on Wednesday, boosted by energy and financial stocks, as prospects of a swift global economic recovery from the coronavirus-induced collapse in world growth widened investor appetite for riskier assets.
Fresh government stimulus globally also helped overshadow a host of other worries from the coronavirus to Hong Kong and growing U.S. civil unrest.
Australia is working on plans for a gas-driven recovery from COVID-19 that will help the country adapt to a low-carbon future, with the conservative government tiptoeing away from its vocal support for coal.
The SP/ASX 200 index rose 1.01% to 5,893.8 points by 0104 GMT. The benchmark ended 0.3% firmer on Tuesday.
The top percentage gainers on the benchmark index were Skycity Entertainment Group Ltd, up 9.21%, followed by Unibail-Rodamco-Westfield SE, gaining 8.56%.
Firmer oil prices propelled a 2.35% gain among energy stocks, with Whitehaven Coal Ltd climbing 5.49% and Worley Ltd jumping 4.67%.
Brent crude futures rose 1.72% to $40.25 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 2.39% to $37.69 per barrel.
Financial stocks rose 1.83% with the “Big Four” banks climbing between 1% and 2.7%.
Miners also traded in the black with a 0.5% gain, led by Syrah Resources Ltd and South32 Ltd climbing 8.62% and 5.94%, respectively.
Gains were capped by a 4.2% decline in gold stocks with shares of Tribune Resources Ltd, down 11.27%, followed by Perseus Mining Ltd losing 10.07%.
About 812 issues on the ASX advanced, while 482 declined as a 1.7-to-1 ratio favored advancers.
In New Zealand, the benchmark SP/NZX 50 index rose 0.83% to 11,125.3.
The top percentage gainers on the benchmark were Vista Group International Ltd, up 14.63%, followed by Tourism Holdings Ltd gaining 9.14%.
Reporting by Shreya Mariam Job in Bengaluru, Editing by Sherry
Jacob-Phillips