Australia Stocks track Wall Street higher

The Australian share market advanced on Thursday, 05 March 2020, as the market mood was buoyed by Wall Street's sharp rebound overnight after former U.S. Vice President Joe Biden's strong performance in the US Democratic primary and better than expected Australia's January trade data shifted focus from the coronavirus outbreak. Almost all sectors advanced, with healthcare, tech, property trusts and telecommunication issues being notable gainers. Around late afternoon, the benchmark S&P/ASX200 index advanced 70.30 points, or 1.11%, to 6,395.70, while the broader All Ordinaries grew 73.90 points, or 1.15%, to 6,472.40.

Wall Street stocks rocketed higher overnight, as former Vice President Joe Biden emerging as the frontrunner of the Democratic Party's presidential race, winning at least nine and possibly 10 of the nomination contests held across 14 states, providing relief to market participants who are wary of the more progressive policy positions of rival Bernie Sanders, a self-described democratic socialist. Sanders favors hefty taxes on wealth and a radical remake of the US healthcare system.

Meanwhile, the Federal Reserve's surprise interest rate cut and upbeat US economic data soothed worries about the impact of the spreading coronavirus outbreak. The Fed jolted markets with a half-a-percentage-point rate cut on Tuesday, saying that while the economy's fundamentals remain strong, the coronavirus poses evolving risks to economic activity. Investors are now encouraged by other global central banks following suit, with the Bank of Canada also lowering rates by 50 bps to 1.25%

Shares were also bolstered by the news that U.S. lawmakers reached a deal on Wednesday for an $8.3 billion emergency aid package to combat the spread of coronavirus. It includes nearly $7.8 billion for agencies dealing with the virus and about $500 million for telehealth services. Also on Wednesday, the International Monetary Fund said it would provide $50 billion in emergency funding, including no interest loans, to help poorer countries respond to the epidemic.

Australia's January trade data released Thursday came in above expectations. The balance on goods and services came in at a surplus of A$5.21 billion on a seasonally adjusted basis.

TPG Telecom was up 9.6% on news the ACCC will not attempt to halt its merger with Vodafone Hutchison Australia.

With rain falling across many parts of eastern Australia, Elders and Graincorp shares also enjoyed strong gains, jumping 8.5% and 5.8%, respectively.

Fortescue Metals continued its rebound, rallying a further 5.2% on the back of strong gains in iron ore prices on Wednesday.

In contrast, shares in Corporate Travel Management tumbled 7.5%, hit by profit taking after going ex-dividend and news Australia had extended existing travel bans to include South Korea.

Online lottery retailer Jumbo Interactive declined after trading ex-dividend, sliding 7.7%.

CURRENCY: The Australian dollar was at $0.6619 after its rise from levels below $0.655 this week.

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