Australia Market climbs to three-week high

Australian share market finished session at over three-week high on Monday, 30 May 2022, with 10 out of 11 sectors settling in the green, on tracking positive lead from Wall Street last Friday on easing concerns over excessive U.S. inflation. Meanwhile positive trade on the Hong Kong and mainland Chinese markets on China's easing of COVID-19 curbs also boosted sentiment.

At closing bell, the benchmark S&P/ASX200 advanced 103.85 points, or 1.45%, to 7,286.56, its highest level since 6 May 2022. The broader All Ordinaries index gained 109.43 points, or 1.48%, to 7,522.56.

Market risk sentiment underpinned on tracking positive finish of US market on Friday, after data showed that U.S. consumer spending rose in April and the uptick in inflation slowed, two signs the world's largest economy could be on track to grow this quarter. Investors were relieved after Commerce Department data showed U.S. inflation, which has prompted the Federal Reserve to raise interest rates, decelerated to 6.3% over a year earlier in April, its first decline in 17 months.

Meanwhile, helping to mellow the mood was news that Shanghai authorities will cancel many conditions for businesses to resume work from Wednesday, easing a city-wide lock down that began two months ago.

Total 10 out of 11 sectors ended in the green, with the Tech and material sectors enjoying the largest percentage gain.

The best performers today were driven by a broad tech-rally and included Zip Co (ZIP), Novonix (NVX) and Block (SQ2), which added 14%, 11% and 10.9%, respectively.

Shares of AGL Energy lost 1.7% after the country's largest electricity generator dumped a controversial demerger plan and announced the exit of its top two executives.

Liontown Resources (LTR) has finished 5.3% higher after it mutually agreed with Tesla to extend the termination date for its supply agreement. The extension will allow LTR and Tesla, to complete negotiations for the definitive full form binding offtake agreement.

CURRENCY NEWS: The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 101.609 following a recent drop from levels above 102. The Australian dollar was at $0.7175 after a climb last week from below $0.71.

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