Australian shares gained 0.5 percent on Thursday after encouraging data in the United States and at home helped the market break two days of losses. Shares in financial and mining companies pulled the market higher, in the contrast to the energy sector which fell 0.7 percent. The S&P/ASX 200 index rose 27.889 points to close at 5,381.5, but it was still down 1 percent this week.
New Zealand's benchmark NZX 50 index edged up 0.3 percent or 15.995 points to finish the session at 5,574.052. It was within sight of a record peak of 5,604.864 touched Monday. "There is a bit of a relief rally in response to better-than expected data in the United States and Germany," said Michael McCarthy, chief market strategist at CMC Markets.
"We've turned a bit of a sentiment corner and it's seen across all asset classes," he said. Some of the reprieve came after Australian approvals to build new homes in November jumped 7.5 percent, against forecasts for a fall of 3.5 percent. The Reserve Bank of Australia has been counting on the housing sector to help the domestic economy cope with a cooling in mining activities.
Also supporting stocks were government bond yields near record lows in much of the developed world, making equity investments attractive. Australia's 10-year bond yield pays a mere 2.7 percent. Shares in mining companies rose amid stabilisation in the prices of iron ore, Australia's top export earner. Rio Tinto gained 2 percent, while BHP Billiton was 0.6 percent higher. Financials also pulled the market higher with ANZ Banking Group and National Australia Bank up around 0.6 percent.
The energy sector lagged with a 0.8 percent loss. Air New Zealand rose 2 percent to NZ$2.60, closing in on a 7-1/2-year high of NZ$2.64 hit late last month after reports that the national carrier had ordered two new Boeing 787 aircraft raised optimism about its expansion plans into Asia and North and South America. Specialised milk processor A2 Milk gained 1.8 percent to N$0.56.
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