SYDNEY/WELLINGTON: Australian shares rose over 1% on Wednesday, with the benchmark index settling above the 6,000 level for the first time since Sept. 3, after the government pledged to spend billions to help pull the economy out of its historic Covid-19 slump.

The S&P/ASX 200 index closed 1.3% higher at 6,036.4, extending gains into a third session.

After market hours on Tuesday, the government announced A$17.8 billion in personal tax cuts and A$5.2 billion in new programmes to boost employment in a budget that tips the country into its deepest deficit on record.

Though not much of a surprise, the budget is definitely supportive of markets in the short- to medium-term, according to Nick Twidale, director and co-founder at brokerage X-chainge.

The financials sub-index closed at its highest in almost a month, with the “big four” banks adding about 2% each.

Energy stocks gained 1.4% despite a drop in oil prices, with heavyweights Woodside Petroleum and Beach Energy among the top percentage gainers.

Tech stocks added 1.2%, closing at their highest in more than a month, led by gains in Afterpay and EML Payments.

New Zealand’s benchmark S&P/NZX 50 index closed 0.3% higher at 12,016.15.—Reuters