Australia Stocks gain 0.7%

Headline indices of the Australian stock market moved higher on Friday, 12 April 2019, as risk sentiments boosted up after latest data showed the U.S. economy remains on solid footing and optimism about progress on a U.S.-China trade deal. Market gains were, however, limited amid lingering uncertainty about the global economic outlook and on caution before Chinese trade data due out later on Friday. At closing bell, the benchmark S&P/ASX200 index added 45.13 points, or 0.73%, at 6,243.80 points, while the broader All Ordinaries rose 42.94 points, or 0.7%, at 6,337.

Market participants concerns about the world's largest economy soothed after strong U.S. labor and inflation data. Data released on Thursday showed first-time filings for U.S. jobless benefits dropped to a 49-1/2-year low last week, pointing to sustained labor market strength. Overall producer prices increased 0.6% in March, the largest rise since October.

 

On U.S.-China trade deal, the United States and China have largely agreed on a mechanism to police any trade agreement they reach, including establishing new enforcement offices, U.S. Treasury Secretary Steven Mnuchin said on April 10. Mnuchin said that progress continues to be made in the talks, including a productive call with China's Vice Premier Liu He on Tuesday night. The United States is demanding that China implement significant reforms to curb the theft of U.S. intellectual property and end forced transfers of technology from American companies to Chinese firms. Washington also wants Beijing to curb industrial subsidies, open its markets more widely to U.S. firms and vastly increase purchases of American agricultural, energy and manufactured goods. The Chinese commerce ministry on Thursday confirmed that senior trade negotiators from both countries discussed the remaining issues in a phone call following the last round of talks in Washington. In the next step, both trade teams will keep in close communication, and work at full speed via all sorts of effective channels to proceed with negotiations, Gao Feng, the ministry's spokesman told. The two sides are working on broad agreements covering six areas: Forced technology transfer and cyber theft, intellectual property rights, services, currency, agriculture and non-tariff barriers to trade

Financials were higher, with all four of the big banks in the green. ANZ inclined 1.6% to A$25.95, Commonwealth added 1.8% to A$71.53, NAB was rose 0.5% to A$24.55, and Westpac jumped 0.7% to A$25.75.

Shares of materials were mostly up. Mining giant BHP was flat at A$39.65 while Rio Tinto added 0.2% to A$101.10 and Fortescue Metals added 1% at A$8.12.

Energy stocks were also higher despite a fall in crude oil prices overnight. Oil Search added almost 1%, Woodside Petroleum rose 0.7% and Santos jumped 0.2%.

CURRENCY: The Australian dollar declined against the U.S. dollar on Friday. The Australian dollar was quoted at 71.24 US cents, from 71.61 US cents on Thursday.

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