Australia shares close at 3-1/2 month high in post-Christmas trade

SYDNEY: Australian shares rose for a fifth straight session on Wednesday, as investors kept aside Omicron worries amid a surge in COVID-19 infections in the country’s most populous state.

The S&P/ASX 200 index ended up 1.2% at 7,420.3 points, to close at its highest level since Sept. 8 following a two-day Christmas break. The benchmark gained 0.4% on Friday in a shortened trading session.

Market participants seemed to shrug off that daily cases in New South Wales, the worst-hit state from the Omicron variant, nearly doubled to 11,201 as they banked on the country’s high vaccination rate to keep economic recovery on track.

“Investors seem to be returning to risk assets like dollar-denominated crude as the worst fears of the impact of Omicron variant have already subsided,” said Kunal Sawhney, chief executive officer of Kalkine Group. The energy sector rose 1.2% to be among the top gainers, with Beach Energy Ltd and Viva Energy Group Ltd, firming 4.1% and 2.2?%, respectively.

The heavyweight financial sector added 1.3%, as the country’s top four banks gained between 1.3% and 1.5%.

Miners closed the session nearly 1% higher after copper prices hit a one-month peak even as blue-chip stocks Rio Tinto and BHP Group underperformed.

Gold stocks added 1.2% as the bullion inched higher with U.S. Treasury yields slipping.

Chalice Mining Ltd, up 7.8%, was the top percentage gainer on the benchmark after the platinum explorer said it was closer to begin drilling at its Julimar project in Western Australia.

The main index was set to reverse losses from pandemic-battered 2020, having added nearly 13% so far this year.

New Zealand’s benchmark S&P/NZX 50 index edged 0.4% higher to 12,940.4 points. Financial services provider Heartland Group Holdings Ltd and pharmaceutical company EBOS Group Ltd were the top gainers, up 4.7% and 3.5%, respectively.