Australian shares rose on Tuesday thanks to strength on Wall Street as investors breathed a sigh of relief following ebbing tensions between the United States and North Korea, though a sharp slide in Domino’s Pizza checked the broader gains. The S&P/ASX 200 index rose 0.5 percent or 27.09 points to 5,757.5 at the close of trade.
US stocks recovered further on Monday after a searing selloff last week, with the S&P 500 scoring its biggest one-day percentage gain since April as concerns about a possible conflict between the United States and North Korea eased. spilled over into Australian stocks, with financials driving the gains.
Australia and New Zealand Banking Group was among the top gainers in the financial sector, jumping 1.3 percent after the country’s No. 4 lender said third quarter cash profit rose 5.3 percent from the previous two-quarters.
Sentiment was also buoyed by comments from the Australian central bank. Minutes from the Reserve Bank of Australia’s August policy meeting showed the bank was confident of a pick-up in inflation and jobs, forecasting a couple of years of “above potential” growth in the economy.
Wesfarmers Ltd and Telstra Ltd were the other big gainers among blue chip stocks, advancing 1.1 percent and 1.7 percent respectively. At the other end, Domino’s Pizza Enterprises tumbled as much as 22.7 percent in its biggest intra-day percentage fall in nearly 11 years after the fast-food chain missed full-year profit expectations due to sluggish sales in Japan and France.
New Zealand’s benchmark S&P/NZX 50 index rose 0.7 percent or 51.8 points to finish the session at a record high of 7,813.7. Contact Energy underpinned the gains, jumping 3.1 percent to end at a more than two-year high.