Australian shares climb as gold rally boosts miners

Reuters
Oct 02
Australian shares climb as gold rally boosts miners

Gold rally lifts mining sub-index to 2-1/2-year high

Healthcare stocks rise, following Wall Street's lead

Major banks rise, supported by RBA's stability review

Updates to close

By Roushni Nair and Jasmeen Ara Islam Shaikh

Oct 2 (Reuters) - Australian shares rose on Thursday, supported by gains in major banks and a rally in gold miners after bullion hit a fresh high for a fourth straight session, lifting the mining sub-index.

The S&P/ASX 200 index .AXJO climbed 1.23% to 8,954.9, its highest close in more than four weeks, with trading volumes rising above the 30-day average.

Gains came as the release of key U.S. jobs data was delayed, clouding the interest rate outlook and spurring safe-haven demand for gold, which has lifted bullion stocks for five straight sessions.

"Yesterday's broad miner weakness was essentially a BHP move; that's largely reversed today as confidence returned after supportive comments from Prime Minister Anthony Albanese and Treasurer Jim Chalmers," said Craig Sidney, senior investment adviser at Shaw and Partners.

"Healthcare followed Wall Street's lead, and CSL looked oversold."

BHP BHP.AX rose more than 2%, recouping almost all losses tied to reports of a pricing dispute with China as investors viewed it as temporary.

Together with gains in gold stocks, this lifted the mining sub-index .AXMM by 2% to its highest level in more than 2-1/2 years. Liontown Resources LTR.AX and Ora Banda Mining OBM.AX jumped 9.7% and 8.9%, respectively.

Gold stocks .AXGD rose 3% in their fifth straight session of gains. St Barbara SBM.AX and Rox Resources RXL.AX led gains on the sub-index, up 16.8% and 14%, respectively. GOL/

The local market also tracked a healthcare-led rally on Wall Street. CSL CSL.AX, Mesoblast MSB.AX and Neuren Pharmaceuticals NEU.AX rose between 3.5% and 6%, helping the healthcare sub-index .AXHJ climb 2.2% to a two-week high.

Financials strengthened, with all four major banks up between 0.6% and 2%. The Reserve Bank of Australia's Financial Stability Review said banks remain resilient, with loan losses contained despite a modest rise in non-performing loans.

In New Zealand, the S&P/NZX 50 index .NZ50 edged up 0.13% to 13,451.76 in its fourth straight session of gains.

(Reporting by Roushni Nair and Jasmeen Ara Islam Shaikh in Bengaluru; Editing by Subhranshu Sahu)

((Roushni.Nair@thomsonreuters.com;))

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