Australia: Shares at near nine-month peak as vaccine news spurs recovery hopes

[BENGALURU] Australian shares on Tuesday touched their highest level in almost nine months, with energy stocks leading the pack, as positive developments surrounding a potential Covid-19 vaccine fanned optimism about a speedy global economic revival.

AstraZeneca said on Monday its Covid-19 vaccine could be up to 90 per cent effective, and cheaper and easier to distribute than rivals, sparking hopes that the fight against the pandemic and its crippling economic fallout may soon be at an end.

Risk appetite was also supported by data that showed US business activity expanded at the fastest rate in more than five years in November.

Back home, Australia's Victoria state, the hotbed of the country's second virus wave, reported zero active cases of coronavirus for the first time in more than eight months, putting it on track to effectively eliminate the virus.

The S&P/ASX 200 index rose 1.1 per cent to 6,631.6 by 0003 GMT, the highest since Feb 28.

Energy stocks hit their highest in more than five months as oil prices climbed on vaccine optimism. Woodside Petroleum added 3.5 per cent and Santos tacked on 3.7 per cent to lead gains in the sub-index.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Heavyweight financials rose to an 8-1/2-month peak, with top lenders Commonwealth Bank of Australia and Australia and New Zealand Banking Group leading the charge.

The gold sub-index shed 5.8 per cent to hit its lowest in more than six months and was the only major sub-index in the red, after the bullion tumbled to its weakest in four months on better-than-expected US business activity data.

Newcrest Mining and Northern Star Resources were the biggest losers, giving up 4.6 per cent and 5.8 per cent, respectively.

New Zealand's benchmark S&P/NZX 50 index gained 0.5 per cent to reach 12,559.21, on course for a second straight session of gains.

Local shares of Westpac Banking Corp and Australia and New Zealand Banking Group jumped 2.7 per cent and 2.5 per cent, respectively.

REUTERS