Jan 9 Australian shares advanced on Monday,
matching gains on Wall Street, as U.S. employment data boosted
sentiment, offseting losses in basic materials that followed
forecasts of severe falls in iron ore prices through 2018.
The S&P/ASX 200 index gained 0.65 percent, or 37.319
points, to 5,792.3, its highest in 19 months, by 1236 GMT. The
benchmark was up 0.04 percent on Friday.
Even though U.S. employment rose by less than anticipated in
December, labour market momentum was sustained by rising wages
and solid payroll numbers.
"The revision to the upside and the strong wage data was
obviously a big factor. That is certainly positive economic data
out of the U.S. and something we are keen on at this stage,"
said Ben Le Brun, a market analyst with Optionsxpress.
Financials dominated the benchmark with the S&P ASX 200
Financials Index hitting a 20-month high in its fifth
straight session of gains.
The "Big Four" banks recorded gains, rising 0.3 percent to
CSL Limited gained as much as 1.4 percent to reach
its highest in more than more than a month after it won European
Commission marketing authorisation for its haemophilia
Retail giant Woolworths Limited rose as much as 1.3
percent in early trade.
Glove and condom maker Ansell Ltd surged up as much
as 2.3 percent to hit its highest in 17 months.
At the other end, index heavyweights BHP Billiton,
Rio Tinto and South32 lost considerably,
falling as much as 0.8 percent, 1.4 percent and 2.1 percent
Fortescue Metals Group Limited slumped to its
lowest in more than two weeks, falling as much as 3.8 percent.
Australia's Department of Industry, Innovation and Science
expects the prices of iron ore, the country's biggest export
commodity, to decline drastically over the next two years, to
well below current market prices, due to the temporary nature of
the current lift in Chinese steel production.
"Seeing a bit of weightiness from the materials sector.
Otherwise we see strength pretty much across the board...This
continues the onward and upward story so far. We have started
the year very much on the front foot," said Brun.
New Zealand's benchmark S&P/NZX 50 index rose as
much as 0.4 percent, or 27.9 points, to touch a two-month high
in early trade.
The healthcare sector was among the biggest gainers with
Fisher and Paykel Healthcare Ltd gaining 1.4 percent.
Auckland International Airport Limited rose as much
as 1.9 percent while Meridian Energy gained 1.2
On the other hand, Fletcher Building Limited
extended losses into a third day, sliding as much as 2.1
(Reporting by Hanna Paul in Bengaluru; Additional reporting by
Shashwat Pradhan; Editing by Eric Meijer)