June 11 – Australian shares rose to a record high on Wednesday, supported by banks and miners, as an agreement between U.S. 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.
U.S. 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 U.S.-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 U.S.-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.
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.
This article was generated from an automated news agency feed without modifications to text.
