Australian shares reversed course to close slightly higher on Monday, as strong economic data from the country’s top trading partner China buoyed sentiment, but weaker technology and mining stocks limited gains.
The S&P/ASX 200 index ended 0.1 per cent higher at 6,773.00, extending the benchmark’s 0.8 per cent rise on Friday.
Data on Monday showed China’s industrial output grew 35.1 per cent in January-February from a year ago, better than the 30 per cent expected in a Reuters poll.
China’s retail sales, fixed asset investment, refinery throughput and aluminium production for first two months of 2021 also marked strong growth.
Additionally, domestic investors were reassured after central bank governor Philip Lowe said that Australia’s recent recovery was quick and strong, and that the country is doing much better than most other advanced economies.
Investors now await minutes of the central bank’s monetary policy meeting, set to be released on Tuesday.
“What will probably receive attention is any comments about the rising bond yields we’ve had globally, and the markets will be paying attention to see if there’s any reassuring and calming words on potential action,” said Steven Daghlian, market analyst at CommSec.
Gold stocks were top gainers, closing the session 1.2 per cent higher as the sector gained from a cheaper U.S. dollar.
De Grey Mining ended about 6 per cent higher, while Red 5 closed 8.8 per cent up.
The healthcare sector finished above 1 per cent, with industry heavyweight
rising 1 per cent and Ansell gaining 2 per cent.
Travel-related stocks soared after Australia and Singapore said they are discussing an air travel bubble that would allow travel between the two countries without the need for quarantine.
Bucking the overall trend, technology stocks tumbled about 2 per cent, tracking weakness in their Wall Street peers on Friday, while miners slipped on lower iron ore prices.
New Zealand’s benchmark S&P/NZX 50 index gained 1.3 per cent to finish the session at 12,592.26.
