Australian stocks received a lift after Wall Street surged on Friday as the United States and China reported progress in five days of negotiations in Beijing last week. After the markets closed on Friday, China and the U. S. announced plans to resume trade negotiations in Washington, fueling hopes that both countries were edging toward a deal.
We feel we have made headway on very, very important and difficult issues, U.
S. Trade Representative Robert Lighthizer said, in a meeting with Chinese President Xi Jinping. Xi expressed hope for a mutually beneficial and win-win agreement, according to the official Xinhua News Agency. A tariffs truce expires March 2 and will leave the U. S. free to more than double import taxes on $200 billion in Chinese goods. President Donald Trump has said he may hold off on these if the country was close to a deal with China.
The finance sector was higher, with ANZ Banking, Commonwealth Bank and National Australia Bank higher in a range of 0.1% to 0.3%. Westpac's shares are rising 0.2% after the lender reported first-quarter unaudited cash earnings of A$2.04 billion, while its statutory net profit was A$1.95 billion.
Energy stocks gained after crude oil prices gained more than 2% on Friday. Oil prices reached some of their highest prices on Monday, touching to their highest level in 2019, amid OPEC-led supply cuts and US-imposed sanctions on Venezuela and Iran. US West Texas Intermediate WTI Crude futuress hit $56 per barrel for the first time in 2019, before edging back to $55.89 per barrel by mid-day on Monday. International Brent crude futures hit a 2019-high of $66.61 per barrel early on Monday before easing to $66.47 per barrel. Woodside Petroleum and Santos gained more than 1% each, while Oil Search added more than 2%
Materials and resources were also higher, with BHP Group and Fortescue Metals up more than 1% each, while Rio Tinto added almost 2%.
Among individual stocks, Ansell shares added more than 2% after health and safety manufacturer's posted a 91% fall in first-half net profit, but raised its full-year earnings outlook.
Brambles shares declined almost 3% after global logistics company's reported a 27% decline in first-half profit and said it expects to spin off its IFCO reusable plastic container business during 2019.
CURRENCY: Australian Dollar was up against greenback and against a basket of other peers on Monday. The Australian dollar was quoted at $0.7143, down from $0.7092 on Friday.
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