INSUBCONTINENT EXCLUSIVE:
Australian shares ended more than 1 per cent higher on Thursday after Beijing said it would halve tariffs on some goods imported from the
United States, in a move that could improve Sino-US ties ahead of talks on Phase 2 of the trade deal.
The S-P/ASX 200 index closed 1.1 per
cent higher at 7,049.2, having gained 0.4 per cent on Wednesday.
Asian shares also cheered Beijing's unexpected announcement, which could
ease one of the biggest risks to global economic growth that has also been threatened by the coronavirus epidemic in China, Australia's
biggest trade partner.
The decrease in tariffs was widely read as a positive step towards resolving the Sino-US trade conflict following the
signing of a Phase 1 trade deal in January, CommSec market analyst James Tao said.
The financials subindex ended 1.4 per cent higher,
underpinned by gains in the "Big Four" banks.
The country's two biggest lenders Commonwealth Bank of Australia and Westpac Banking Corp
advanced 1 per cent and 1.7 per cent, respectively.
Sentiment was also supported by a firmer finish on Wall Street on Wednesday after
encouraging US economic data.
Traders cited unconfirmed reports of possible medical advances for the coronavirus as a trigger for
Wednesday's rally, although they also said such a catalyst was likely to be an excuse for short-covering.
The World Health Organization,
however, played down media reports of "breakthrough" drugs being discovered to treat people infected with the new virus.
Strength in copper
prices helped mining stocks extend gains into a third consecutive session.
Heavyweights BHP Group and Rio Tinto Ltd, which together own the
majority of the world's biggest copper mine in Chile, added 1.7 per cent and 0.7 per cent, respectively.
The healthcare subindex rose 1.2
per cent to close at a record high, as heavyweight CSL Ltd surged 1.6 per cent after Morgan Stanley upgraded the company's rating and
price target.
Meanwhile gold stocks suffered a second straight session of losses as investors moved away from the safe-haven asset.
New
Zealand's financial markets were closed for a holiday
