Australian shares jumped 1 percent to a new five-year high on Monday as major banks climbed on expectations of another stellar set of earnings and the broader market took a positive lead from Wall Street after the S&P 500 hit a record peak on Friday. The S&P/ASX 200 index added 55 points to 5,441.4 points, its highest close since June 2008. The benchmark has risen in 10 out of the past 12 sessions, adding 5.8 percent since October 10.
The big four banks - Australia and New Zealand Banking Group Ltd (ANZ), Commonwealth Bank of Australia, National Australia Bank Ltd (NAB) and Westpac Banking Corp led the way with gains of 0.7 to 1.8 percent. The banks are on track to report a combined record profit for the fifth consecutive year when they report over the coming days. Blue chip resources also gave the market a boost, with global miners BHP Billiton Ltd and Rio Tinto Ltd adding 1.2 percent and 1 percent, respectively, underpinned by a survey showing improved Chinese manufacturing on Friday.
The New Zealand market was closed for a public holiday. Australian shares jumped 1.3 percent on Monday morning, as major banks rallied on expectations of another stellar set of earnings from a sector that has produced record profits recently. Blue chip resources also gave the market a boost, with global miners BHP Billiton Ltd and Rio Tinto Ltd adding 1.2 percent and 1.3 percent respectively, underpinned by a survey showing improved Chinese manufacturing on Friday.
The market opened with a firm lead from Wall Street, with the S&P 500 ending at another record high on Friday. The big four banks - Australia and New Zealand Banking Group Ltd (ANZ), Commonwealth Bank of Australia, National Australia Bank Ltd (NAB) and Westpac Banking Corp - dominated early interest. The four heavyweights are on track to report a combined record profit for the fifth consecutive year. ANZ bank will report its full year earnings on Tuesday, followed by others in coming weeks. CBA climbed 1.4 percent to a new record high of A$77.38, and NAB jumped 2.0 percent. The banking sector has had a stellar year with share prices buoyed by strong dividend yields and record profits.
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