Oct 11 Australian shares gained on Tuesday,
bolstered by energy stocks, after oil prices jumped as much as 3
percent and Brent hit a one-year high.
The S&P/ASX 200 index rose as much as 0.4 percent to
5,498 points, the highest level since Aug. 30, before shedding
some of the gains.
Oil prices surged after Russian President Vladimir Putin
said Russia was ready to join a proposed deal to curb oil
production in the hope of stemming a two-year price
Putin, speaking at an energy congress in Istanbul, said that
low oil prices have lead to under-investment in the global
energy sector which will turn into a deficit at some point and
trigger new "unpredictable jumps" in prices.
Saudi Energy Minister Khalid al-Falih said he was optimistic
of a deal by November. His Algerian counterpart Nouredine
Bouterfa said he expected to see "commitments" on cuts from
non-OPEC oil producers at meetings in Istanbul this week.
"It was pretty much a certainty that the energy and
materials were going to start on their front foot this morning,
on the back of a good rise in oil prices as Saudis talked
optimistically about production freezes," said Tony Farnham, an
economist with Patersons Securities.
Energy stocks gained 2.1 percent to touch a
seven-week high. Oil major Santos Ltd jumped 4.8
percent and Oil Search Ltd rose 2.6 percent.
Sentiment was also aided by iron ore and steel futures in
China, which rebounded from multi-week lows on Monday amid hopes
that government efforts to curb property purchases may only have
limited impact in cooling overall steel demand.
Global miner BHP Billiton extended gains into a
fourth-straight session, advancing 1.6 percent while Rio Tinto
was up as much as 1.4 percent, hitting a five-month
Retail giant Woolworths Ltd extended gains, rising
nearly 1 percent.
Sirtex Medical Ltd fell as much as 6.2 percent, its
biggest intra-day percentage loss in four months.
Advancing issues outnumbered decliners on the Australia
Stock Exchange by a 1.45-to-1 ratio.
New Zealand's benchmark S&P/NZX 50 index snapped
five-straight sessions of losses to rise 0.5 percent or 32.74
points to 7,149.66.
Industrials and utilities accounted for nearly half of the
Poultry processing services provider Tegel Group
was the top percentage gainer, climbing 2.8 percent.
Auckland International Airport advanced 2.1 percent
and Air New Zealand extended gains, rising 1.1 percent.
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(Reporting by Shashwat Pradhan; Additional reporting by Justin
George Varghese in Bengaluru; Editing by Richard Borsuk)