Australian shares rose on Wednesday, tracking their peers on Wall Street, with the technology and commodity sectors leading the gains as investors braced for the outcome of a tightly fought election in the United States.
The S&P/ASX 200 index rose 0.7% to 8,190.90 points by 2350 GMT, with all sub-indexes trading in the green.
The benchmark fell 0.4% on Tuesday. Globally, traders are tuned into a hotly-contested US election as opinion polls failed to suggest a clear winner between Republican Donald Trump and Democrat Kamala Harris.
In the event of Trump becoming president, his tariffs could trigger a global trade war, potentially harming Antipodean economies that depend significantly on free trade.
Back on the local bourse, the heavy-weight mining index gained the most, as iron ore prices in top steel producer China climbed on the prospects of more stimulus measures.
Sector behemoths BHP Group, Rio Tinto and Fortescue rose between 0.4% and 1.2%.
The gold sector lodged a 0.6% rise, as prices of the precious metal edged higher on prospects of political tensions in the world’s largest economy.
Evolution Mining and Northern Star Resources rose 1.2% and 1% respectively.
Technology stocks followed suit with a 1.2% gain, as their counterparts on the Nasdaq Composite Index climbed. Accounting software provider Xero rose 1%.
Financials drag Australia shares lower; RBA rate decision looms
The financial sector advanced 0.7%, with all the “Big Four” banks trading between 0.3% and 0.8% higher. New Zealand’s benchmark S&P/NZX 50 index reversed early losses, trading 0.2% higher to 12,681.37 points.
The country’s jobless rate rose to a near four-year high in the September quarter, cementing bets of a 50-basis-point cut by the central bank later this month.
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