Australia Market rises for first times in four sessions

The Australian share market closed higher on Friday, 27 September 2019, snapping three days of loosing streak, as investors chased for bottom fishing on recently battered stocks on rising optimism about a US-China trade deal. Most of ASX sectors inclined, with shares of technology, telcos, utilities, energy and consumer discretionary businesses being notable gainers, whereas healthcare and gold mining companies struggled. At closing bell, the benchmark S&P/ASX200 index rose 38.54 points, or 0.58%, to 6,716.12, while the broader All Ordinaries grew 38.52 points, or 0.57%, to 6,824.09.

Traders were encouraged by a Chinese Commerce Ministry announcement that importers had agreed to buy U.S. soybeans as the two sides make conciliatory gestures ahead of trade talks. China's commerce ministry said Beijing and Washington are still discussing details of upcoming trade talks in October, and making preparations to ensure "positive progress" is made during the negotiations, stoking hopes that the two sides would find a way out of their near 15-month old trade war.

 

The atmosphere around the trade spat also turned lighter after US President Donald Trump on Wednesday told reporters the two sides were having "good conversations" and that an agreement "could happen sooner than you think." Since China is Australia's largest trading partner, domestic stocks are particularly sensitive to developments on the Sino-US trade front.

Plans to go ahead with negotiations next month have helped to ease market jitters, but there has been no sign of progress toward resolving the bruising tariff war over trade and technology.

Shares of energy companies advanced, thanks to firmer oil prices over concerns of a Middle East conflict disrupting supply. Majors in the oil and gas space Woodside Petroleum and Santos each ended about 1% higher.

The technology and utility stocks also advanced. Energy infrastructure firm AusNet Services rose nearly 2%, while logistics software maker Wisetech Global closed 2.3% up.

CURRENCY NEWS: The Australian dollar declined against greenback on Friday. The Australian dollar, sensitive to shifts in broader risk appetite, changed hands at $0.6759 following a decline from levels above $0.678 seen earlier in the trading week.

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