Oct 3 Australian shares rallied on Monday,
driven by financials as Deutsche Bank's shares recovered from
record lows on a report the bank was close to settlement with
U.S. authorities over the sale of toxic mortgage bonds.
The S&P/ASX 200 index rose 51.2 points, or 0.9
percent, to 5,487.1 by 0026 GMT, its highest intra-day level in
more than a month.
Deutsche Bank shares, which hit a record low on
Friday, extended their recovery after the AFP news agency said
the bank was near a settlement of $5.4 billion.
The bank has been in crisis since being handed the demand
for up to $14 billion in September by the Department of Justice
(DOJ) for misselling mortgage-backed securities before the
"Overall, it (developments around Deutsche Bank) resolved a
systematic risk of what the market was worried about in terms of
banking and that is being diluted for now," said Bill Keenan,
head of equities and research at Lonsec.
Deutsche Bank's links to the world's largest lenders make it
a bigger potential risk to the wider financial system than any
other global bank, the International Monetary Fund (IMF) said on
"Still see a positive run up to Christmas (for Australian
markets), with the U.S. election being the next major event the
markets are focused on alongside the Fed meeting in December,"
Financial stocks accounted for more than half of the gains
on the benchmark. The "Big Four" banks climbed from 0.9 percent
to 1.8 percent.
Energy stocks extended gains into a third straight
session after oil prices posted their second straight monthly
gain on OPEC's planned output cuts. Oil major Woodside
Petroleum rose as much as 1.4 percent touching a
one-month high while Beach Energy Ltd soared 3.4
Miner South32 Ltd gained as much as 3.3 percent to
hit a record high.
Mining giant BHP Billiton Ltd jumped as much as 1.7
percent to touch a near 11-month high after copper posted its
biggest monthly rise in a year and a half as optimism over
demand growth helped it catch up with other
Whitehaven Coal was among the top percentage
gainers, soaring 4.5 percent.
New Zealand's benchmark S&P/NZX 50 index nudged
lower by 0.1 percent, or 5.81 points, to 7,355.28.
Materials and industrials were the biggest drag on the
Restaurant Brands New Zealand was down 1.4 percent
in what is its biggest intra-day percentage loss in three weeks,
before paring the losses.
Retailer Kathmandu Holdings fell 1.5 percent while
Scales Corp was among the biggest percentage losers on
the benchmark, sliding 2.2 percent.
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(Reporting by Shashwat Pradhan; Additional reporting by Justin
George Varghese in Bengaluru)