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Australia shares end at 5-month high; NZ extends rally
October 17, 2017 / 5:47 AM / a month ago

Australia shares end at 5-month high; NZ extends rally

(Updates to close)

Oct 17 (Reuters) - Australian shares ended higher on Tuesday, extending gains for a fifth consecutive session underpinned by a record close on Wall Street and higher oil prices.

The S&P/ASX 200 index ended up 0.7 percent or 42.837 points at 5,889.6, its highest close since May 3. The benchmark rose 0.6 percent on Monday.

Wall Street advanced on Monday, ahead of a long list of earnings this week, and oil prices rose as political tensions threaten supplies.

Tensions mounted as Iraqi forces seized the oil-rich city of Kirkuk from largely autonomous Kurdish fighters, and as U.S. President Donald Trump refused to certify Iran’s compliance over a nuclear deal last Friday.

The Australian benchmark index was led by gains in financials and materials stocks, with the ‘Big Four’ banks rising between 0.5 percent and 1.4 percent.

Australia and New Zealand Banking Group Ltd closed 0.6 percent higher, after it sold its pension unit to IOOF Holdings for A$975 million ($765.1 million)

Among material stocks, Rio Tinto Ltd ended the session at its highest since Feb. 14, 2013.

The global miner on Tuesday said it had lifted its third quarter iron ore shipments by 6 percent, after a sluggish first half when bad weather and rail track maintenance crimped iron ore production.

BHP Billiton Ltd finished 1.3 percent higher.

New Zealand’s benchmark S&P/NZX 50 index rose 0.3 percent or 21.32 points to finish the session at 8,112.05.

Data earlier in the day showed that the country’s third quarter inflation rate jumped, overtaking the central bank forecasts, but is unlikely to alter the bank’s determination to keep rates on hold.

Gains on the index were led by consumer staples and materials stocks.

a2 Milk Company Ltd gained 2.6 percent to end the session at a record high, while Fletcher Building Ltd rose 1.7 percent.

$1 = 1.2744 Australian dollars Reporting by Nicole Pinto; Editing by Jacqueline Wong

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