Australian shares climb as NAB sets peak, BlueScope jumps on improved bid

Australian shares climbed on Wednesday, powered by a record high for National Australia Bank after the lender posted strong first-quarter numbers, while BlueScope Steel jumped on an improved takeover offer.

The S&P/ASX 200 index was up 0.5% at 9,005 points, as of 2332 GMT.

The benchmark ended 0.2% higher on Tuesday.

Shares of National Australia Bank surged as much as 5.8% to an all-time high, after the lender logged a 16% rise in first-quarter cash earnings, driven by strong performance across its business and home-lending segments.

NAB shares pushed the broader financials sub-index up 1%, putting it on track to snap a three-day losing streak if the current momentum persists.

NAB was the last of the “Big Four” banks to report their earnings this month, with all lenders posting stronger profits.

Strong earnings and upbeat market reactions in the shares of Australia’s “Big Four” banks have propelled the sub-index almost 8% higher so far this month.

Meanwhile, shares of BlueScope Steel surged as much as 6% after SGH Ltd and US-based Steel Dynamics raised their buyout offer for Australia’s largest listed steelmaker to A$15 billion ($10.63 billion).

Healthcare stocks gained 1.5%, led by CSL after the biotech firm signed a licensing deal with Eli Lilly, granting it certain rights to develop and commercialise clazakizumab, an IL-6-blocking antibody for patients with end-stage kidney disease.

Bucking the broader positive trend, the mining sub-index lost 0.7%, pressured by gold producers after bullion dropped on reduced safe-haven demand following easing geopolitical tensions.

New Zealand’s benchmark S&P/NZX 50 index rose 0.7% to 13,126.57 points.

Investors awaited the Reserve Bank of New Zealand’s policy decision, due later in the day, where the central bank is widely expected to hold rates.