Australia Market extends gains

Headline indices of the Australia share market ended higher for second straight session on Friday, 06 as investor sentiment bolstered by tracking a strong session on Wall Street overnight after a slew of data reinforced confidence in the American economy and hopes for reduced tensions after Washington and Beijing agreed to hold high-level trade talks next month. At closing bell, the benchmark S&P/ASX200 index surged 60.19 points, or 0.92%, to 6613.20, while the broader All Ordinaries jumped 64.68 points, or 0.97%, to 6720.80.

U.S. markets rose to their highest levels since the end of July during the trading day on Thursday after news emerged that the U.S. and China planned to hold negotiations in October. Markets in the U.S. were also spurred by data showing that private payrolls grew higher than the expected 195,000 in August. The Dow Jones Industrial Average soared 272.68 points or 1.41% while the S&P gained 38.22 or 1.3% and the Nasdaq jumped 139.95 or 1.75%.

Trade developments hopes between the world's two biggest economies have spurred after China confirmed a new round of high-level trade talks in Washington set for early October. The impending talks rekindled hopes for progress after the two countries recently escalated tensions with fresh tariffs.

China announced the 13th round of high-level talks in its official media Thursday following a phone conversation between Chinese Vice Premier Liu He and U.S. Trade Representative Robert Lighthizer and U.S. Treasury Secretary Steven Mnuchin. A statement issued by the Ministry of Commerce said the two sides agreed to take concrete action to promote favorable conditions for the talks and pledged to keep in close contact. Working teams were expected to begin negotiations in mid-September in advance of the October session.

Shares of materials and resources advanced on tracking continued strength in iron ore prices. Global mining giant Rio Tinto added 1.1%, while Fortescue Metals Group rose 3.3%. Rare earths producer Lynas Corp jumped 5.6%, after it signed an agreement with a city in Western Australia to explore a potential initial ore processing site.

Australia's energy stocks jumped, helped by rising oil prices. Cooper Energy surged as much as 17.1% to hit an over 11-year peak, after the oil and gas explorer said drilling at an exploration well led to the discovery of a gasfield in the Otway Basin in offshore Victoria.

Tech stocks also higher, on tracking their US peers. Aussie tech firms Appen and Computershare advanced 2.6% and 3.2% respectively.

Heavyweight financial stocks posted a second straight session of gains, with the "Big Four" banks ending between 0.4% and 0.9% higher.

ECONOMIC NEWS: Australia AiG Construction Index Remains In Contraction In August -- Australia construction sector continued to contract in August with a Performance of Construction Index score of 44.6, the latest survey from the Australian Industry Group revealed on Friday. That's up sharply from 39.1 in July, although it still remains beneath the boom-or-bust line of 50 that separates expansion from contraction. In all, the index sector has been in contraction for 12 straight months. Among the individual components of the survey, employment, new orders, supplier deliveries and selling prices all improved sharply but continued to contract.

CURRENCY NEWS: The Australian dollar rose against greenback on Friday. The Australian dollar was at $0.6808 after rising from levels below $0.68 yesterday.

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