Australia Stocks climb to 11-month highs

The Australian share market finished session at an 11-month high on Tuesday, 16 February 2021, extending gains from the previous session, driven by strong half-yearly results and a record dividend payout from mining behemoth BHP Group. At closing bell, the benchmark S&P/ASX200 advanced 48.36 points, or 0.7%, to 6,917.27, its highest since Feb. 25, 2020. The broader All Ordinaries added 39.60 points, or 0.55%, to 7,189.26.

Materials and resources were the biggest boosts to the benchmark, with BHP Group shares leading rally, up 2.7%, after the world's top miner reported a 16% increase in its underlying half-year profit declared a bumper interim dividend and expects strong demand from China to continue in 2021. Rival Rio Tinto rallied 3% and South32 advanced 1.5% on the back of a surge in commodity prices.

 

Financials were also higher. Shares of National Australia Bank were up 2.3% after the bank posted a pickup in first-quarter profit from the previous two quarters, and pointed to encouraging signs on the economy.

ECONOMIC NEWS: Minutes from the Reserve Bank of Australia's February monetary policy meeting released on Tuesday, showing members concluded that very significant monetary support would be required for some time as it would be some years before the Bank's goals for inflation and unemployment were achieved. Given this, it would be premature to consider withdrawing monetary stimulus, the RBA added in the minutes.

CURRENCY NEWS: The Australian dollar changed hands at $0.7776, still higher than levels below $0.772 seen last week.

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