Australia Market rises on ending coronavirus restrictions hopes

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The Australian share market finished session higher on Friday, 08 May 2020, as risk sentiment improved on tracking rallies on Wall Street overnight and news that Australia has a plan to emerge from coronavirus shutdowns. Most of ASX sectors inclined, with shares in the Financials and Consumer Discretionary issues being notable gainers. At closing bell, the benchmark S&P/ASX200 index advanced 26.38 points, or 0.5%, to 5,391.08. The broader All Ordinaries added by 38.13 points, or 0.7%, to 5,487.99.

The Australian share market got a boost on hopes for an economic recovery at home after the government unveiled plans to end most coronavirus restrictions by July.

Prime Minister Scott Morrison's announced a plan to ease social distancing restrictions in a three-step process, which would remove all curbs by July and get nearly 1 million people back to work amid a decline in coronavirus cases.

Retail stocks were up, fuelled by an increase in confidence and certainty following the government's announcement of a three-point plan for ending pandemic shutdowns, with the first stage looking at an opening up of retailers, restaurants and cafes. Department store Myer rose 45% and electronics retail Harvey Norman added 6.7%.

The financials sector also pulled up the market higher, clawing back some losses from earlier in the week. These gains were driven by Macquarie Group, which ended the day 5.7% ahead, and AMP, which gained 3.3%.

Real estate companies also gained. Vicinity was up 5.2% and Westfield owner Scentre ended up 3.7%.

Mining stocks were up as Chinese iron ore prices scaled a nine-month peak. Fortescue Metals Group Ltd, the world's no.4 iron ore miner, jumped 5.5%.

CURRENCY NEWS: The Australian dollar changed hands at $0.6532 after rising sharply from levels below $0.642 yesterday.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, May 08 2020. 17:18 IST