Australian shares end higher on stimulus, hopes of easing curbs

Australian shares closed higher on Thursday, rebounding from a more than 2pc drop in the previous session, boosted by stimulus talks and hopes of further easing in coronavirus restrictions in the country.

The S&P/ASX 200 index added 1pc to finish at 5,872.9, snapping a three-day streak of losses.

Australian government announced a A$1.5 billion ($1.08 billion) package to revive manufacturing across six sectors as part of a plan to get the economy out of its first recession in three decades.

Aiding sentiment was a headway made by US lawmakers for a new $2.2 trillion pandemic relief package, which helped Wall Street post an upbeat close and exit the September quarter in black.

"Overnight rebound in Wall Street on talks that the US congress was close on stimulus plans only helps boost the sentiment," said James Tao, market analyst at CommSec.

"Sentiment is a lot more positive compared with just 24 hours ago, and these stimulus talks certainly make a huge difference," Tao added.

Meanwhile, easing of border restrictions between Queensland and New South Wales also helped the market, while low new daily cases in Victoria kept the hopes of a "COVID-normal" 2021 without lockdowns alive.

All three major sub-indexes jumped, with miners leading the pack.

Global iron ore mining giants BHP Group and Rio Tinto advanced up to 1.9pc and 1.2pc, respectively.

Financials were lifted by Commonwealth Bank of Australia and Australia and New Zealand Banking Group, which rose 0.7pc and 1pc, respectively.

In New Zealand, the benchmark S&P/NZX 50 index ended 0.6pc higher at 11,812.73, boosted by financials and healthcare sectors.

Dairy firm a2 Milk Co continued its losing streak, slipping 1pc to post its lowest close since March 17.