Commodities drive bourse higher
ASX 200 marks best day in three months
Sept 29 (Reuters) - Australian shares jumped on
Thursday, marking their best day in three months, driven higher
by the commodities companies, while also tracking a rebound in
global equity markets as the Bank of England took measures to
stem a rout in its bond markets.
The S&P/ASX 200 index rose as much as 2% earlier in
the day, before easing to finish the session 1.4% higher.
The British central bank launched an emergency bond-buying
programme to calm the fixed income markets, after a government
initiative to cut taxes triggered a massive sell-off in equities
globally and a rally in the greenback.
However, investors continue to fret about the possibility of
a global economic recession as central banks worldwide continue
raising interest rates to control runaway inflation.
"So, things seem tentatively calm at the moment (after the
BoE's actions), but that doesn't take away from the fact that
recession calls are indeed getting louder," said Jessica Amir, a
market strategist at Saxo Capital Markets.
Back in Australia, the commodity indexes led gains, with
miners climbing the most, at 2.3%, tracking higher iron
ore prices in top steel producer, China.
Sector bellwethers Rio Tinto, BHP Group
and Fortescue Metals Group gained between 1% and 3%.
Gold stocks also shone bright on the benchmark,
rising about 3.5%, with index majors Newcrest Mining
and Northern Star Resources advancing 3% and 4.3%,
"I think the market is still not sure which commodities to
lean on now. There are some doing well because the market thinks
even in a recession they should play positively," said Mathan
Somasundaram, chief executive officer of Deep Data Analytics.
The financial index traded 1% higher, with the "Big
Four" banks firming in the range of 1.1% and 1.7%.
New Zealand's benchmark S&P/NZX 50 index rose 0.7%
to finish the session at 11,200 points.
(Reporting by Archishma Iyer in Bengaluru; Editing by Savio