Australian shares rose 2.13 percent on Thursday with broad-based gains as investors took a positive view on minutes of the Federal Reserve's October monetary meeting. The minutes, which suggested an interest rate hike in December was firmly on the cards, were seen to be showing confidence in the US economy's ability to absorb a rate rise.
The S&P/ASX 200 index gained 109.5 points to 5,242.6 at the close of trade. The benchmark edged up 0.3 percent on Wednesday. Shares in mining giant BHP Billiton rose 3.08 percent after the company said its priority was to maintain a healthy balance sheet. It made no direct comment on future dividends amid speculation that tumbling commodity prices will force BHP to cut its payout.
New Zealand's benchmark NZX 50 index was up 0.26 percent or 15.44 points to finish the session at 5,995.25. The index, which edged up 0.3 percent on Wednesday, is on track for its best weekly performance since the week ended October 9. International payments company OzForex was the top gainer on the index after Western Union made a A$888 million take-over proposal. The stock jumped 32 percent to a more than 18-month high.
The heavyweight resources sector propped the index higher with Newcrest Mining jumping 4.6 percent, Rio Tinto rose 4.3 percent and BHP Billiton up 2.4 percent. BHP Billiton will be on the radar with its annual general meeting and a news conference later in the day. National Australia Bank gained 2.1 percent, ANZ rose 1.9 percent, while Westpac Bank and Commonwealth Bank were up 1.6 and 1.3 percent respectively.
Comments
Comments are closed.