Australia shares close higher on rebound in miners, financials

Australia shares close higher on rebound in miners, financials

Australian shares ended firmer on Tuesday, as mining and financial stocks recovered from sharp losses in the previous session, with Bingo Industries being the biggest gainer in the index after the waste management firm received a buyout offer.

The S&P/ASX 200 index rose 1.2% to 6,742.60 at the close of trade, after it ended 0.8% lower on Monday.

The gains seem to be a correction from Monday’s downside moves, while positive GDP figures from China on Monday also helped broader sentiment, said Nick Twidale, CEO of APAC at Sydney-based brokerage FP Markets.

Data on Monday showed that economic growth in Australia‘s largest trading partner, China, picked up speed in the fourth quarter, with growth beating expectations.

“There’s no fresh negative news and domestic COVID-19 cases seem to be stabilising. These factors are helping investor confidence squeak back in,” Twidale added.

Most investors are hoping that the quick recovery in Beijing‘s economy could help spur growth across the rest of the region, while Australia recorded another day with no new locally acquired cases on Tuesday.

Bingo Industries was the top gainer in the index, ending 20.4% higher after a private equity firm made a A$2.29 billion ($1.76 billion) play for the company.

Global miner Rio Tinto‘s shares rose 0.7% after the company reported a 2.4% rise in fourth-quarter iron ore shipments. Rival BHP Group, due to report second-quarter production results on Wednesday, ended the session 0.9% higher.

Financials climbed 1.3%, with lender Westpac Banking Corp among top gainers with an nearly 2% gain.

Tyro Payments – not a constituent of the ASX200 – ended 25% higher after the payments processor said it expects to resolve outages that have plagued its terminal fleet since early January. Looking to win back faith with investors, the company also rebuffed a short-seller report.

New Zealand’s benchmark S&P/NZX 50 index rose 0.3% or 42.95 points to finish the session at 12,881.31.

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