Investor sentiment around the world was brightened by Gilead Sciences Inc.'s announcement that preliminary results of a coronavirus drug trial showed at least 50% of patients treated with a five-day dosage of remdesivir improved and more than half were discharged from the hospital within two weeks. Later Wednesday, White House health advisor Dr. Anthony Fauci said NIAID's remdesivir drug trial, which enrolled about 800 patients, showed quite good news and that the drug would set a new standard of care for Covid-19 patients. Globally, the coronavirus pandemic has infected more than 3.1 million and taken at least 226,771 lives, according to data compiled by John Hopkins University.
In addition, investors welcomed the U.S. Federal Reserve's decision to maintain its accommodative policy during a two-day Federal Open Market Committee meeting through Wednesday. The US Federal Reserve said it would continue with its aggressive policy stance until it is comfortable that the economy is back on its feet. The Fed held its interest rate target between 0% and 0.25%. The Federal Open Market Committee said in its post-meeting statement that the ongoing public health crisis "will weigh heavily on economic activity, employment, and inflation in the near term," and pose considerable risks to the economic outlook over the medium term.
Players also took heart from China's official data showing manufacturing activity in the country expanded slightly in April. The official manufacturing Purchasing Managers' Index for April came in at 50.8, as compared to 52.0 in March. PMI readings above 50 signify expansion, while those below that mark indicate contraction. A subsequent private survey also released on Thursday, on the other hand, showed manufacturing activity in April contracting instead. The Caixin/Markit manufacturing PMI for April came in at 49.4.
The energy sector once again led the charge, supported by another mind-boggling rally in crude oil futures in Asia which helped to erase all the losses seen earlier in the week. Oil Search, Santos, Origin Energy and Caltex Australia all climbed more than 8%, helping the energy sector finish up by the same amount.
REITs and information technology also outperformed the benchmark, adding 4.3% and 4.9% respectively. GPT Group, Vicinity Centres and Mirvac all jumped more than 6.7%. Nearmap and Afterpay were the top tech performers, lifting 18.2% and 10.8% respectively.
ECONOMIC NEWS: Australia Private Sector Credit Climbs 1.1% On Month In March- Australia private sector credit climbed 1.1% on month in March, accelerating from 0.4% in February, the Reserve Bank of Australia said on Thursday. On a yearly basis, credit jumped 3.6%, slowing from 3.9% in the previous month. Housing credit was up 3% on month and 3.1% on year, while personal credit fell 1.4% on month and 6.5% on year and business credit advanced 2.9% on month and 6.3% on year. Broad money was up 2.7% on month and 6.3% on year.
CURRENCY NEWS: The Australian dollar was at $0.6557 following its rise from levels below $0.648 seen earlier this week.
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