SYDNEY/WELLINGTON: Australian shares on Tuesday closed 2% higher to notch their best session in nearly a month, buoyed by the central bank's decision to trim interest rates and launch quantitative easing.
The S&P/ASX 200 index finished 1.9% higher at 6,066.40 after marking its strongest intraday session since Oct. 5. The benchmark gained 0.4% in the previous session.
The Reserve Bank of Australia trimmed interest rates to near zero on Tuesday and expanded its bond-buying programme, as widely expected, a much-needed salve to aid economic recovery from the country's worst recession in a generation.
The Australian gold index rallied as their safe-haven appeal brightened on uncertainty surrounding the outcome of the US election and a spike in global coronavirus cases.
Financials added more than 1%, with the so-called "Big Four" banks, except Westpac Banking Corp, closing firmer.
Domestic energy stocks were the top performers after closing 5.3% higher, buoyed by a rebound in oil prices.
New Zealand's benchmark S&P/NZX 50 index ended 0.5% higher at 12,130.31, with Pushpay gaining 4.6% and Fletcher Building adding 3.3%.
"QE is different and they are talking about 100 billion, so that will be well-received. It is not a solution, it just keeps things going in the short term," Brad Smoling, managing director at Smoling Stockbroking.-Reuters
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