Stock markets in Australia and New Zealand jumped more than 2% on Tuesday, joining a global rally in equities overnight as investor risk appetite was boosted by promising developments toward a coronavirus vaccine.
The Australian benchmark index <.AXJO> hit its highest level since March 5, led by gains for travel, leisure and energy firms, while gold-related stocks plunged as investors dumped the safe-haven bullion in favour of riskier assets.
Global markets rallied sharply, with Wall Street's main indexes hitting record highs, after U.S. drugmaker Pfizer <PFE.N> and its German partner BioNTech <BNTX.O> said data from a large-scale trial of their vaccine showed it was more than 90% effective in preventing COVID-19.
"Even with widespread distribution still months away the announcement effect will provide a consumer and business sentiment boost to be sure," RBC Capital Markets analysts said in a note.
"Whether people want to call that a 'V' recovery or not is, at this point, inconsequential – it is materially faster than most anyone appreciated," they said.
Travel firms Flight Centre Travel Group <FLT.AX>, Sydney Airport Holdings <SYD.AX> and Qantas Airways Ltd <QAN.AX> soared more than 10% each on the news.
Energy stocks <.AXEJ>, which have been among the worst affected by the coronavirus-related hit to demand, climbed over 8% as crude prices surged.
Australia's top independent gas producer Woodside Petroleum Ltd <WPL.AX> gained 8% while Papua New Guinea-focused Oil Search <OSH.AX> surged 21%.
Real estate firms Scentre Group <SCG.AX>, GPT Group <GPT.AX> and Dexus <DXS.AX> gained between 8% and 15%.
Gold stocks <.AXGD>, however, slumped more than 7% in their worst session since May 27, following a steep fall in bullion prices.
Miners Saracen Mineral Holdings Ltd <SAR.AX>, Northern Star Resources Ltd <NST.AX> and Evolution Mining <EVN.AX> were among the top percentage losers on the benchmark.
Tech shares <.AXIJ> fell 4%, dragged lower by a 6% decline in buy-now-pay-later heavyweight Afterpay Ltd <APT.AX>, which has soared so far this year due to increased online payment transactions during the pandemic.
Glove maker Ansell Ltd <ANN.AX>, which had benefited from a steep hike in demand this year, was on track for its worst day since March 31.
In New Zealand, the benchmark S&P/NZX 50 index <.NZ50> rose as much as 2.2% to hit a fresh peak.
Vista Group International <VGL.NZ>, which develops software for the film industry, soared 20%, while carrier Air New Zealand <AIR.NZ> jumped 15%.
(This story has been refiled to remove extraneous letters at start of first paragraph).
(Reporting by Shruti Sonal in Bengaluru; editing by Richard Pullin)
