CANBERRA: Australian shares advanced on Wednesday, as a tumbling greenback sent mining and oil stocks into positive territory. The S&P/ASX 200 index ended 0.57 percent, or 32.289 points, higher at 5,653.2 at the close of trade. The benchmark fell 0.7 percent on Tuesday. The dollar faltered against a basket of currencies and suffered its worst January in three decades after U.S. President Donald Trump criticised key trading partners.
Global stocks remain subdued as Trump’s comments led to a risk-off mood. Safe haven assets such as gold glittered at a one-week high, while materials held on to strong gains from earlier in the session. Fortescue Metals Group Ltd rallied as much as 4.7 percent to hit a near six-year high, as the world’s fourth-largest iron ore miner expected a boost in iron ore demand after China’s decision to close steel mills that use scrap metal.
Index heavyweights BHP Billiton Ltd and South32 Ltd rose 1.7 percent and 1.1 percent, respectively. The country’s biggest gold producer Newcrest Mining Ltd rose as much as 3.1 percent in its third straight session of gains. Westpac Banking Corp, one of the index’s top performers, perked up 0.9 percent while international investment advisor AMP Limited rose 1 percent. Oil markets were range-bound on a surplus of supplies. Oil and gas giant Woodside Petroleum Ltd edged up 1.4 percent. Senex Energy Ltd surged as much as 8.9 percent after the oil and gas explorer lined up U.S. partners to fund a gas project, which could help ease a pending gas shortage in Australia’s east.
