Australian and New Zealand shares finished higher on Monday, as risk appetite was buoyant on encouraging results from a COVID-19 treatment trial and on hopes that the U.S. earnings season would see most companies beat forecasts.
The S&P/ASX 200 index <.AXJO> rose 0.98% to 5,977.5 points. The benchmark, which fell 0.61% on Friday, is off 16.9% from its lifetime high on Feb. 20.
New Zealand's benchmark S&P/NZX 50 index <.NZ50> rose 0.4% to 11,434.79.
A late-stage study showed that U.S. biopharmaceutical company Gilead Sciences Inc's <GILD.O> antiviral drug remdesivir significantly reduced COVID-19 mortality rate.
The promising data "sparked a wave of peak-virus optimism in stock markets," Jeffrey Halley, senior market analyst, Asia Pacific, OANDA, said in a note.
"Earnings season for Q2 in the U.S. kicks off this week, with the largest banks reporting across the week. I expect that trading revenues will outperform once again as market volatility continues," Halley wrote.
Top gainer, the ASX 300 metals and mining index <.AXMM> rose 1.77% led by Galaxy Resources Ltd <GXY.AX>, up 6.06%, followed by IGO Ltd <IGO.AX>, gaining 4.54%.
Chinese iron ore futures <DCIOcv1> on the Dalian Commodity Exchange rose 1.5%, on expectation of seasonal tight supplies from big miners in Australia.[IRONORE/]
Meanwhile, copper prices increased due to supply worries from top producer Chile as workers called for a potential strike at a mine. [MET/L]
Financial stocks <.AXFJ> rose 1.63% led by Platinum Asset Management <PTM.AX>, up 6.76%, and Virgin Money UK PLC <VUK.AX>, gaining 5.44%.
Healthcare stocks <.AXHJ> shed 0.7%, weighed down by industry behemoth CSL Ltd <CSL.AX>.
Brokerage Jefferies says CSL's product revenues in the medium-term is under threat as U.S. source plasma collection centres in the second quarter fell due to the coronavirus outbreak.
In New Zealand, the top percentage gainer on the <.NZ50> benchmark was Port of Tauranga Ltd <POT.NZ>, up 4.04%, followed by Chorus Ltd <CNU.NZ>, gaining 2.83%
(Reporting by Nikhil Subba in Bengaluru; Editing by Shailesh Kuber)
