SYDNEY: Australian shares ended at their highest level in three weeks on Thursday, led by financials and technology stocks, as positive developments in a COVID-19 vaccine trial and optimism about fresh stimulus raised hopes of a quicker economic recovery.

Rising for the third straight day, the S&P/ASX 200 index gained 1.7% to 6,032.7, its highest closing level since June 11. Leading gains in Australia, technology stocks jumped 3.7% to hit a record peak, taking cues from its peers in the United States.

Afterpay Ltd soared 9.5% to hit an all-time high and was the benchmark's second-biggest gainer after brokerage Citi more than doubled its price target on the buy-now-pay-later firm's stock.

Heavyweight financials also gained 1.9%, led by the "Big Four" banks.

News of encouraging results about a potential vaccine, coupled with solid US manufacturing data, dented demand for safe havens and pushed gold stocks down 0.2%.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index climbed to its highest since June 9, ending up 1.3% at 11,502.52.

Travel equipment retailer Kathmandu Holdings was the top gainer on the index, surging 11.4% on positive same-store sales growth.

Investors cheered promising results of a Covid-19 vaccine developed by German biotech firm BioNTech and US pharmaceutical giant Pfizer, which was found to be well tolerated in early-stage human trials.