Aust shares climb 1.5% in early trade

Shares have bounced about 1.5 per cent in early trade on the Australian market with all industry sectors higher.

The S&P/ASX200 benchmark index was higher by 81.7 points, or 1.49 per cent, at 5578.7 points after the first 15 minutes of trade on Monday.

The All Ordinaries index was 84.4 points, or 1.5 per cent higher, at 5693.2.

Energy was the best performing sector, up 2.72 per cent, followed by a 2.34 per cent gain in information technology and consumer discretionaries, higher by 2.32 per cent.

The sizeable materials and financial sectors were doing well with rises of 1.3 per cent and 1.07 per cent respectively.

Australian e-commerce provider Afterpay was trading higher by more than 4.0 per cent to $46.68 after appointing interim chairperson Elana Rubin to take over the role permanently.

IG Markets analyst Kyle Rodda says traders would have to decide how to respond to the escalating tensions between the US and China, along with the heightened civil discord in Hong Kong.

US-China friction came to the fore over the source of the coronavirus and escalated further with China’s proposal to impose security laws on Hong Kong, drawing flak from Washington.

The ongoing sitting of the China’s National People’s Congress this week is also being watched for more significant decisions.

Oil prices dropped last week after China said it would not publish an annual growth target for the first time.

Beijing has also pledged more government spending as the pandemic keeps hammering its economy.

The Australian dollar was buying 65.44 US cents at 1015 AEST, higher from 65.15 US cents at the close of trade on Friday.

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