Australian shares ended higher for the second straight session on Thursday, with heavyweight miners leading the charge on expectations of higher demand from China after its government announced additional stimulus measures.
The S&P/ASX 200 index closed up 0.4% at 8,223 points, hitting a more than one-week high. The benchmark ended 0.1% higher on Wednesday.
On Thursday, China’s central bank said it would start accepting applications from financial institutions to join a newly created funding scheme to aid the stock market, adding to its recent stimulus bazooka.
China is Australia’s largest trading partner, which bodes well in terms of demand for domestic companies.
“With China’s commitment to meeting economic targets and potential stimulus announcements on the weekend, investors are feeling less panicked by the sharp volatility this week,” said Mark Gardner, head of equities at MPC Markets.
Miners jumped 1.7% on the day as traders scooped up shares after sharp sell-offs over the last two sessions.
Australian shares rise on boost from banks
BHP Group and Fortescue closed 1.4% and 4% higher each.
Meanwhile, Rio Tinto ended 1.4% higher after a definitive deal to buy Arcadium Lithium on Wednesday.
The Australian shares of the Philadelphia-based lithium producer soared nearly 39%.
“If big corporate names such as Rio are out there ‘shopping around’, that adds a dose of extra confidence to the broader market,” said Tim Waterer, a market analyst at KCM Trade.
The energy sub-index rose 1% to become the second-biggest sectoral gainer, boosted by higher oil prices after concerns of supply disruptions on continuing Middle East tensions.
Sector heavyweights Woodside Energy and Santos gained 0.7% and 1%, respectively.
New Zealand’s benchmark S&P/NZX 50 index dipped 0.2% to finish the session at 12,754.58 points.
Its central bank announced a 50-basis-point rate cut on Wednesday.
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