Australian shares rose to a record high on Wednesday, supported by banks and miners, as an agreement between US and Chinese officials on a framework to revive their trade truce reinforced hopes of easing global economic tensions.
The S&P/ASX 200 index was up 0.4% at 8,623.40 points, as of 0044 GMT, after climbing 0.8% to a record close on Tuesday.
US and Chinese officials agreed on a framework to put their trade truce back on track and resolve China’s export restrictions on rare-earth minerals and magnets at the conclusion of two days of intense negotiations in London.
An US-China settlement would pacify investors around the world, calming jitters surrounding a potential escalation of trade wars between the world’s two largest economies.
Heavily dependent on export to China, Australian miners rose 0.7%, defying weaker iron ore prices driven by expectations of rising supply.
Mining giants BHP, Rio Tinto and Fortescue climbed 2.2%, 1% and 2.4%, respectively. Financials were up 0.4% with the “big four” banks rising between 0.3% and 0.5%.
Energy stocks advanced nearly 2% to their highest point in more than three months, buoyed by stronger oil prices amid optimism that a US-China trade deal could support global economic growth and boost oil demand.
Among corporate news, property services business John Lyng Group surged more than 18% after it announced a buyout offer from Australian fund manager Pacific Equity Partners for an undisclosed value.
Energy and tech stocks push Australia shares higher; US-China trade talks on watch
Meanwhile, shares of Qantas remained largely unchanged after the airline announced the decision to close its Singapore-based budget carrier, Jetstar Asia.
New Zealand’s benchmark S&P/NZX 50 index rose 0.7% to 12,647.44 points.
Fletcher Building surged nearly 10% after the construction materials maker said it has received interest from parties for its businesses, including the construction division.
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