Australia Market finishes near five-month high

The Australian share market finished session near five-month high on Tuesday, 25 August 2020, as investor sentiment was bolstered by following a Wall Street overnight rally driven by vaccine hopes. Also supporting the mood were statements from both China and the United States saying top-level trade representatives had held constructive talks over the future of the Phase 1 trade deal.

At closing bell, the benchmark S&P/ASX200 index added 31.82 points, or 0.52%, to 6,161.39. The broader All Ordinaries rose 31.70 points, or 0.5%, to 6,332.02.

Investors hung onto hopes the coronavirus pandemic may come under control as treatments get developed. On Sunday, the U.S. Food and Drug Administration issued an emergency use authorization of convalescent plasma for hospitalized Covid-19 patients, a treatment that uses blood plasma donated by people who've recovered from the virus. President Donald Trump said at a news conference Sunday that the plasma treatment cuts the mortality rate by 35%. Aiding market sentiment was a report the Trump administration is considering fast-tracking an experimental COVID-19 vaccine developed by AstraZeneca Plc and Oxford University for use in the United States ahead of the nation's upcoming presidential election.

 

Financials were higher, with Westpac up 4.4% to A$17.85. National Australia Bank gained 4.2% to $18.28, ANZ gained 3.2% to A$18.80, and Commonwealth Bank gained 2.2% to A$70.45.

Talk of a COVID-19 vaccine breakthrough boosted the travel sector. Flight Centre shares gained 6.2% to A$13.29, Corporate Travel gained 6% to A$15.23, and Webjet gained 4.2% to A$3.72.

CURRENCY NEWS: The Australian dollar changed hands at $0.7169 following a decline yesterday from levels around $0.72.

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