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Australia shares rebound on miners, energy stocks; NZ hits 8-mth closing high
May 8, 2017 / 6:30 AM / 4 months ago

Australia shares rebound on miners, energy stocks; NZ hits 8-mth closing high

(Updates to close)

May 8 (Reuters) - Australian shares rose on Monday, boosted by a rally in mining and energy stocks after copper recovered from a five-month low and oil gained on expectations an OPEC-led output cut would be extended.

The S&P/ASX 200 index ended four sessions of losses to rise 0.6 percent, or 34.34 points, to 5,870.90 at the close of trade.

Copper recovered on Friday from a five-month low as mine workers in Peru considered launching a new strike and some investors regarded the lower prices as good value.

Australia’s mining index rose one percent, driven by gains in BHP Billiton and Rio Tinto, which climbed 1.6 percent and 2.3 percent respectively.

In other commodities, oil prices rose on Monday on a growing conviction that an OPEC-led production cut initially scheduled to end in June would be extended to cover all of 2017.

WorleyParsons Ltd was the biggest gainer on the energy index, rising 3.5 percent.

Sentiment was also lifted by the comfortable victory of centrist Emmanuel Macron over far-right nationalist Marine Le Pen in the French presidential election.

Macron’s victory brought comfort to investors, who had been nervous of the risk of another populist upheaval to follow Brexit and Donald Trump’s election as U.S. president.

New Zealand’s benchmark S&P/NZX 50 index climbed 0.8 percent, or 60.96 points, to 7,426.46, its highest close since Sept. 9, 2016.

Healthcare, industrials and telecom stocks accounted for most of the gains on the index.

Air New Zealand was the top percentage gainer, rising 2.6 percent.

Reporting By Shashwat Pradhan in Bengaluru

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