SYDNEY: The Australian sharemarket ended the day higher for the first time since China’s currency devaluations began on Tuesday, and despite a third decline in the yuan today.
The Chinese currency saw a further 1.1 per cent softening today following yesterday’s 1.62 per cent fall and Tuesday’s dramatic decrease of 1.9 per cent, which was its biggest drop in more than two decades.
At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 index was 5.8 points, or 0.11 per cent, higher at 5387.9, while the broader All Ordinaries added 5.5 points, or 0.1 per cent, to 5389.
IG market analyst Angus Nicholson said investors were getting a better handle on what Beijing’s currency fixing moves meant for key sectors like materials and energy.
“Markets today are taking the fixing news far better than yesterday,” he said.
“The People’s Bank of China’s opaque communications policy may well have led to panic over-selling earlier in the week.”
Mining and energy shares were also buoyed by oil prices rebounding off more than six-year lows as well as a 1.7 per cent uptick in the iron ore price, while elsewhere an NAB survey found a surge in business confidence during the June quarter.
