Australia shares rally on China stimulus hopes and Wall Street rebound
Australian shares kicked off the week on a strong note on Monday, with all sectors trading higher as sentiment improved on rising expectations of further stimulus from China and a rebound in U.S. equities last week.The S&P/ASX 200 index rose 0.7% to 7,854.4, as of 2358 GMT. The benchmark rose 0.5% on Friday.China’s State Council announced plans to stimulate domestic consumption by increasing household incomes, according to the official Xinhua News Agency on Sunday.As Australia’s largest trading partner, stimulus measures in China are widely seen as supportive of demand for key commodities.Mining stocks led the charge, with the sub-index climbing 1.6% as iron ore prices gained on expectations of stronger demand. Sector heavyweights BHP Group, Rio Tinto, and Fortescue Metals rose between 1.5%and 3.3%.Energy stocks advanced 1.3% after oil futures opened higher. Woodside Energy and Santos each gained over 1%.The relief rally in the Australian benchmark comes after a global sell-off has been underway since mid-February, driven by U.S. import tariffs, recession fears, escalating tensions between the United States and its closest allies, and growing concerns over government spending.Financials gained 0.6%, snapping a nine-session losing streak. Index heavyweights Commonwealth Bank and ANZ gained 0.8% and 1.3%, respectively. Westpac climbed 0.8% after announcing it had hired NationalAustralia Bank’s CFO.Technology shares also rallied 0.5%, tracking Wall Street’s tech rebound on Friday. Index heavyweight WiseTech Global rose 0.7%, while data center provider NEXTDC advanced 0.5%.Gold stocks extended their gains, rising 0.6% on the back of stronger bullion prices. Ramelius Resources lost 0.3%, after announcing a merger with Spartan Resources to form a new A$4.2 billion gold producer. Spartansurged about 12% to hit an over six-year high.In New Zealand, the S&P/NZX 50 index extended gains, rising 0.2% to 12,291.9.
