Australia Market extends gain

The Australian share market finished session higher on Wednesday, 17 June 2020, as risk sentiments boosted up on tracking gains on the Wall Street overnight. However, market gains capped amid concerns over a second wave of coronavirus infection and escalating geopolitical tensions pertaining to the Korean Peninsula.

At closing bell, the benchmark S&P/ASX200 index added 49.50 points, or 0.83%, to 5,991.80. The broader All Ordinaries added 50.98 points, or 0.84%, to 6,109.10.

Market gains continued as hopes for a swift global economic recovery rose after a record jump in US retail sales. US retail sales rebounded sharply in May after two months of declines, spurring hopes that the virus-induced recession may be drawing to an end.

The optimism, however, was crimped by a resurgence in coronavirus cases. New infections have hit record highs in six US states and Beijing cut flights and closed schools to contain a fresh outbreak in the Chinese capital. Australia also said it will continue restrictions on its international borders for "some time to come".

Investors' sentiments were also rattled by escalating geopolitical tensions pertaining to the Korean Peninsula after North Korea demolished an inter-Korean liaison office and rejected an offer by South Korea to send special envoys, vowing to send troops back to the border.

Tech stocks jumped after Wall Street peers rallied overnight. Shares of WiseTech Global rose 5.9%, while Computershare Ltd gained 4.3%.

Shares of material players slipped, with global miners BHP Group and Rio Tinto losing 0.7% each.

ECONOMIC NEWS: Australia Westpec Leading Index Remains In Deep Negative Territory-- Australia Westpac- Melbourne Institute Leading Index which indicates the likely pace of economic activity relative to trend three to nine months into the future, rose to -4.79% in May from -5.08% in April. The leading index rose in May from the previous month, but it remained in deep negative territory consistent with an economic recession, data showed. The indicator growth rate has weakened sharply over the last six months, dropping to the -4.79% in May from -0.28% in December.

CURRENCY NEWS: The Australian dollar changed hands at $0.6896 after slipping from levels above $0.693 yesterday.

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