Investors are now looking for news on the progress of the U.S.-China trade negotiations that are set to continue in Washington today. As per reports, the U.S. and China have resolved most of the outstanding issues and are drawing closer to a final trade agreement. White House economic adviser Larry Kudlow also said on Tuesday that the world's two largest economies "expect to make more headway" in trade talks this week.
Also helping sentiment was a better-than-forecast increase in a gauge of China's services industries, adding to readings on manufacturing that showed improvement earlier in the week.
Shares of materials sector was strong performer, with BHP up 2.3% to A$39.91, its highest level since 2011. Both Rio Tinto and Fortescue Metals reached their highest levels since 2008, meanwhile, with Rio gaining 1.9% to A$100.32 and Fortescue up 1.8% to A$7.79. Oil Search added 0.4% and Santos was up 0.1%, while Woodside Petroleum added 0.2%.
Growth stocks consumer discretionary companies moved higher, with lottery website operator Jumbo Interactive and kitchen appliance company Breville Group hit all-time highs, with Jumbo up 6% to A$16, and Breville gaining 4.3% to A$17.53. Domain Group rocketed 8.2% higher to A$2.91
The big four banks had a more subdued day, with NAB and ANZ down, 0.2 and 0.1%, respectively, while Westpac rose 0.1% and Commonwealth Bank gained 0.01%.
In economic news, the Australian Bureau of Statistics said that the value of retail sales in Australia was up a seasonally adjusted 0.8% on month at A$27.27 billion in February, following the 0.1% gain in January.
The Australian Bureau of Statistics also said that Australia posted a seasonally adjusted merchandise trade surplus of A$4.80 billion in February, up from A$4.55 billion in January. Exports were flat on month at A$39.83 billion, while imports fell 1.0% to A$35.03 billion.
Australia service sector remained in contraction in March with a Performance of Service Index score of 44.8, the latest survey from the Australian Industry Group showed on Wednesday. That's up marginally from 44.5 in February, although it remains well beneath the boom-or-bust line of 50 that separates expansion from contraction. It's also well below the 12-monthg average of 52.3. Individually, sales, new orders, supplier deliveries, finished stocks and selling prices all were in contraction - while employment, capacity utilization, input prices and average wages all expanded.
CURRENCY: The Australian dollar was up against the U.S. dollar on Wednesday, amid positive signs for the local economy and optimism on US-China trade talks. The Australian dollar was quoted at 71.07 US cents, from 70.85 US cents on Tuesday.
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