Australian shares on Wednesday saw their best session in more than a month, as gold stocks rallied, while TPG Telecom touched a record low after a regulator blocked the Telstra-TPG wireless internet deal.
The S&P/ASX 200 ended 1.3% higher at 7,115.10 points, after shedding 2.5% over the previous four sessions. The benchmark index also recorded its best day since Nov. 11.
“A Santa Claus rally is usually well under way by this stage of the month in December and while the possibility has been revived by Wednesday’s spectacular bounce by the ASX200, the backdrop and the trading patterns this month have been very similar to 2018,” said Tony Sycamore, a market analyst with IG Australia.
TPG Telecom slumped up to 5.8% and hit a record low after Australia’s antitrust regulator blocked an asset transfer deal between Telstra and TPG, the country’s No.1 and No.2 wireless internet firms, citing competition concerns.
Gold stocks surged 5.8% and posted their sharpest gains since Nov. 9 on strong overnight bullion prices.
The country’s largest gold miner Newcrest Mining soared 6.5%. Miners jumped 2.5%, with BHP Group, Rio Tinto and Fortescue Metals climbing between 1.7% and 3%. Strong crude prices lifted energy stocks 2.6%.
The sub-index recorded its best session in about a month. Woodside Energy and Santos rose 2.7% each.
Australian shares post worst day in 1 1/2 months as miners weigh
Financials added 0.5% and rose after four straight days of losses.
New Zealand’s benchmark S&P/NZX 50 closed 0.4% higher at 11,452.05.
Power utility firm Vector rose 1%, following a 50% stake sale in its metering business.
Separately, a survey showed consumer confidence in New Zealand fell in December to its lowest level since the survey began in 2004 as rapid increases in the cost of living weigh.
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