AUSTRALIAN shares hit a more than two-month high on Tuesday, boosted by gains across most sectors, as the U.S.-China deal to temporarily cut tariffs sparked optimism about a possible de-escalation in the global trade war.
The S&P/ASX 200 index jumped 0.8% to 8,300.6 points, the highest since February 27, by 0030 GMT. The benchmark is up for the fifth consecutive session of gains.
On Monday, the U.S. and China revealed plans to significantly reduce the high tariffs on each other for 90 days.
The U.S. said it would lower tariffs on Chinese imports from 145% to 30%, while China agreed to reduce tariffs on American imports from 125% to 10%.
The news caused local investors to rejoice, given China’s position as Australia’s largest trading partner.
In Sydney, energy stocks surged about 3.3% to their highest since April 3 and were poised for their sixth straight session of rise.
Sector heavyweight Woodside Energy gained 2.9% and its smaller rival Santos added 2.4%, to their highest since early April.
Miners climbed as much as 1% to their highest since March 31, as the U.S.-China tariff deal sent iron ore prices higher.
The world’s largest listed miner, BHP Group, advanced 2.6% to its highest since March 28, while Rio Tinto gained 1.8%.
Financials added 0.4%, led by Westpac’s 1.8% rise. However, ANZ Group fell as much as 2.5% to its lowest since April 24 on trading ex-dividend.
Technology stocks gained about 3.8%, hitting their highest since February 24, tracking the rise in Wall Street peers.
Software firm WiseTech Global soared nearly 7% to its highest since February 19.
New Zealand’s benchmark S&P/NZX 50 index gained 0.8% to 12,778.71 points, touching its highest since February 21. It is on track for the third consecutive session of gains.
