SYDNEY/WELLINGTON: Australian shares ended a three-session losing streak to finish higher on Tuesday as the central bank sounded optimistic about a recovery in the coronavirus-hit economy while keeping interest rates at an all-time low. The S&P/ASX 200 index was up 1.1% at 6,588.5 points at the close of trade. The benchmark ended lower on Monday over Australia's deepening tensions with its largest trading partner China.
In broad-based gains, gold stocks climbed 2.9% and led the charge on the benchmark as bullion prices rose on worries over spiking Covid-19 cases. Fast food retailer Collins Foods and pizza company Domino's Pizza Enterprises were the biggest boost to the benchmark.
New Zealand's benchmark S&P/NZX 50 index snapped two sessions of gains to end 0.3% lower. The Reserve Bank of Australia (RBA) held rates at near-zero in a widely expected move as easy monetary and fiscal policies underpin the economy, fuelling demand for homes and boosting construction activity.
Economic recovery is underway and recent data have generally been better than expected, said RBA Governor Philip Lowe, while reiterating the board was unlikely to raise the cash rate for at least three years and was prepared to do more if necessary.
Investor focus will now shift to the third-quarter gross domestic product data, which is likely to show 2.5% growth in the economy in September quarter, bouncing back from its first recession since 1991, according to a Reuters poll.
Comments
Comments are closed.