Australia Market extends gain on hope of economy reopening

The Australian share market finished session higher on Monday, 11 May 2020, as risk sentiment improved on tracking positive cues from Wall Street last Friday and as economies prepare to reopen businesses from coronavirus-induced lockdown. Every ASX sector traded higher, led by financial, energy, industrials and consumer discretionary. At closing bell, the benchmark S&P/ASX200 index advanced 70.14 points, or 1.3%, to 5,461.22. The broader All Ordinaries added by 71.13 points, or 1.3%, to 5,559.12.

The Australian share market extended gains on hopes for an economic recovery at home after the Government's plans to reopen the economy and gradually lift coronavirus restrictions in three stages. 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.

 

Broader sentiment was also helped by moves by some European countries to ease virus restrictions, although South Korea and Germany reported a rise in new cases.

Financial stocks advanced and underpinned the rally. Three of the country's "Big Four" banks rose between 0.5% and 0.9%. Macquarie Group advanced as brokerage firms raised its price target for the stock, even after the investment bank reported dismal full-year results last week.

Australia's hard-hit retailers and travel stocks have rebounded on the Government's plans to reopen the economy and gradually lift coronavirus restrictions in three stages.

Export-oriented mining stocks gained, with index heavyweights BHP Group and Rio Tinto firming 0.6% and 1.4%, respectively.

CURRENCY NEWS: The Australian dollar changed hands at 0.6546 after rising from levels below $0.64 in the previous trading week.

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