Australia shares gain as trade optimism lifts mood; NZ steady

Hallenstein Glasson Holdings

27/09/2019 04:01

* Energy stocks rise on firmer oil prices
    * Three of Australia's Big Four banks in positive territory
    * Miners, gold stocks trade lower on global political woes

    By Nikhil Subba
    Sept 27 (Reuters) - Australian shares advanced on Friday,
with technology and utility sectors leading gains, as investors
cheered hints of progress in talks to resolve the Sino-U.S.
tariff dispute.
    The S&P/ASX 200 index  .AXJO  was up 0.4% or 27.8 points at
6,705.4, as of 0257 GMT, but was set for its first weekly
decline after marking five consecutive weekly gains. The
benchmark closed 0.5% lower on Thursday.
    Australian stocks are particularly sensitive to developments
on the Sino-U.S. trade front, since China is Australia's largest
trading partner.
    The Chinese commerce ministry said Beijing and Washington
are still discussing details of upcoming trade talks in October,
and making preparations to ensure "positive progress" is made
during the negotiations.  urn:newsml:reuters.com:*:nL3N26H297
    U.S. President Donald Trump had stoked trade hopes on
Wednesday when he told reporters the two sides were having "good
conversations" and that an agreement "could happen sooner than
you think". 
    The United States and China are preparing for another round
of high-level trade talks in early October in Washington to try
to find a way out of their nearly 15-month trade war.
    "Markets are cautiously optimistic ... there are some signs
the trade resolution could be certainly moving in the right
direction," said James Tao, market analyst, CommSec.
    "There's no major indication that we are necessarily going
to reach a deal or be closer to a deal, but that's just the
market's interpretation of what we've seen from both sides," Tao
added.
    The Australian technology  .AXIJ  and utility sub-indexes
 .AXUJ  advanced more than 1% each. Energy infrastructure firm
AusNet Services Ltd  AST.AX  climbed as much as nearly 2%, while
logistics software maker Wisetech Global  WTC.AX  advanced as
much as 2.5%.
    The energy sector  .AXEJ  jumped about 1%, hoisted by firmer
oil prices over concerns of a Middle East conflict disrupting
supply.  urn:newsml:reuters.com:*:nL3N26H0OZ
    Heavyweights in the energy sector Woodside Petroleum
 WPL.AX  and Santos Ltd  STO.AX  each rose nearly 1%.
    Three of Australia's Big Four lenders were trading higher,
lifting the banking subindex  .AXFJ  about 0.3%.    
    Meanwhile, stocks in the mining space  .AXMM  were dragged
0.2% lower, dented by a drop in copper prices as investors
focused on a dismal demand outlook.
    Gold stocks  .AXGD  dropped 1.3% to their lowest since Sept
19, with the bullion being on track to end the week lower as
investors preferred the safety of the dollar in the wake of
political uncertainties in the United States.
    The dollar was holding near multi-week highs against most
major currencies.
   New Zealand's benchmark S&P/NZX 50 index  .NZ50  was little
changed at 10,821.36.
    Electricity retailer Meridian Energy  MEL.NZ  declined about
5%, while Hallenstein Glasson Holdings Ltd  HLG.NZ  rose up to
1.7% after the retailer posted a 6.1% rise in its full-year NPAT
and a 3.4% climb in annual sales.

    ($1 = 1.5911 New Zealand dollars)

 (Reporting by Nikhil Subba in Bengaluru, Editing by Sherry
Jacob-Phillips)
 
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