Australian shares climbed on Tuesday as mining and energy stocks led broad-based gains on the recovery in oil prices, shrugging off worries about fresh COVID curbs in China.
The S&P/ASX 200 index ended 0.6% higher at 7,184.1 points, its best closing level in just over a week. The benchmark lost 0.2% on Monday.
Energy stocks emerged as the top gainer on the benchmark, soaring over 2.5%, after oil prices rose as Saudi Arabia denied reports of planned increases in OPEC+ supply.
Export-reliant mining stocks jumped as much as 1.8%, snapping a three-day losing streak.
Hebe Chen, a market analyst at IG Markets, said mining stocks stopped the bleeding due to stabilized oil prices.
“However, I suspect today’s uptrend is vulnerable in the face of the back-and-forth COVID updates from China. Hence, for the rest of the week, major themes will be surrounding a re-check of China’s reopening story and the (U.S.) central bank’s next move,” said Chen.
Beijing on Monday shut down economic activity in hard-hit districts and tightened rules for entering the city, as it continued to face its most severe test of the COVID-19 pandemic.
The minutes of the U.S. Federal Reserve’s last meeting are due on Wednesday and are in focus to help gauge the bank’s rate-hike path.
Among stocks, BHP Group rose up to 1.8% after it reached an agreement, on Monday, with miner workers at Chile’s Escondida mine, the world’s largest copper mine, to avoid a strike planned for Nov. 21 and 23.
Extending gains from the previous session, financials added 0.3%, with National Australia Bank and Commonwealth Bank of Australia up 0.5% and 0.8%, respectively.
Technology stocks climbed 1%, with Xero Ltd and Computershare Ltd rising 1.7% and 0.8%, respectively.
New Zealand’s benchmark S&P/NZX 50 index fell 0.2% to 11,420.42 points.
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