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Australia S&P/ASX200 extends gain on Sino-US trade optimism

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Headline indices of the Australian share market advanced on Tuesday, 22 October 2019, as investor sentiment bolstered by tracking gains on Wall Street overnight and signs of progress in resolving the prolonged U. S.-China trade dispute. Around late afternoon, the benchmark S&P/ASX200 index was up 24.59 points, or 0.37%, to 6,677.10, while the broader All Ordinaries advanced 25.14 points, or 0.37%, to 6,782.80.

Investor appetite for risk assets bolstered on further signs of progress toward a resolution of the trade dispute between the United States and China after U. S. President Donald Trump continued to strike optimistic tones on Monday, while White House adviser Larry Kudlow said U.

S. tariffs on Chinese goods scheduled for December could be withdrawn if talks go well. According to the reports, Trump and Chinese President Xi Jinping are set to participate in the Asia-Pacific Economic Cooperation meetings in Chile during mid-November, where many are anticipating a partial trade deal to be signed between the two countries.

Shares of materials and resources gained, benefited from firmer copper and iron ore prices, with BHP Group and Rio Tinto, the largest miners on the benchmark, adding about 0.4 per cent and 1.2 per cent, respectively. Whitehaven Coal (WHC) shares gained 4% on a trading update with production lifting by 23% while sales were 14% higher on the same time last year.

Financial stocks rose slightly, with three of the country's big four banks gaining about 0.5 per cent, while Commonwealth Bank of Australia fell 0.2 per cent. Wealth manager AMP rose about 3% after its funds management arm announced a US$6.2 billion fund raising.

On the other hand, healthcare stocks fell, with Cochlear shedding nearly 4 per cent after the hearing aid maker flagged lower earnings per share target at its annual general meeting.

CURRENCY NEWS: The Australian dollar hold gains against greenback on Tuesday, on optimism over a U. S.-China trade deal. The Australian dollar, sensitive to shifts in broader risk appetite, changed hands at $0.6869, up from $0.6860.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, October 22 2019. 09:50 IST