Australian stocks have punched through the 7,000 level again on renewed confidence about how China is handling the coronavirus crisis.
Shares on the benchmark S&P/ASX200 index were up 57.4 points, or 0.83 per cent, at 7006.1 at 1030 AEDT as stocks rose across the board.
All indices were in the green after China’s economic stimulus eased investor fears about the impact of the deadly novel coronavirus on global markets.
The broader All Ordinaries index was up 58.2 points, or 0.83 per cent, at 7,105.8 after 30 minutes of trading.
IG markets analyst Kyle Rodda says given burgeoning hope that the coronavirus outbreak is slowly becoming contained, focus on Wednesday will be on the hard-hit materials and energy sector.
“Both sectors have tumbled 6 and 8 per cent in the past fortnight as the coronavirus panic hit,” he said in a research note.
After half an hour of trade, the energy index was up 0.62 per cent at 11,056.8 while the materials index had added 0.88 per cent to 13,911.6.
Big miners Rio Tinto, BHP Billiton and Fortescue Metals were all stronger as were Santos, Woodside and Oil Search.
Gold miners were slightly lower after gold fell overnight as investors ditched the save haven asset in favour of riskier assets.
Newcrest Mining was 41 cents, or 1.4 per cent, lower at $28.90 while Northern Star was down 41 cents, or 3.11 per cent, at $12.77.
Computershare shares rose 47.5 cents, or 2.66 per cent, to $18.325 after the investor services group said it wanted to buy Corporate Creations to improve its reach in the US.
Perenti Global shares lifted 8 cents, or 5.67 per cent to $1.49 after it confirmed it was thinking about buying Downer EDI’s mining servicing business. Downer shares rose 15 cents, or 2.07 per cent, to $7.41.
The market will also be looking to hear what Reserve Bank Governor Philip Lowe has to say about the year ahead during a lunchtime speech in Sydney.
The Australian dollar was buying 67.38 US cents at 1030, up from 67.18 US cents on Tuesday.
AAP
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