Australian shares closed at a one-month high on Tuesday, as better-than-expected data from its biggest trading partner China outweighed fears over the deepening economic impact from the coronavirus pandemic.
The S&P/ASX 200 index ended <.AXJO> 1.9% higher, or 100.8 points, to 5,488.10.
Data showed China's exports in March signalled a modest recovery in the world's second-largest economy, prompting investors to look past a survey that showed domestic business and consumer sentiment falling to a record low in March.
"The market is still on the hopium that massive government stimulus will save the day," Brad Smoling, managing director at Smoling Stockbroking said.
"Both supply and demand will take a very long time to heal. I am selling into rallies and see another big downward leg on the horizon."
Rising fears of a steeper economic downturn pushed gold prices to a seven-year peak. [GOL/]
The Gold index <.AXGD> surged 11% to end at its highest in over a month, with largest-listed gold miner Newcrest Mining <NCM.AX> climbing 12.4% in its best session since November 2008.
The energy sub-index <.AXEJ> rose 1%, as heavyweight Woodside Petroleum <WPL.AX> gained 0.7% and Oil Search <OSH.AX> tacked on 1.9%.
Oil prices saw a modest rise of 1% even as major producers agreed to rein in supply and the main U.S. energy forecasting agency said shale output in the world's biggest crude producer would see a record fall in April. [O/R]
In the financial sector <.AXFJ>, all the "Big Four" Australian banks gained over 1%, while no. 3 lender National Australia Bank <NAB.AX> rose 2.9%.
Second-largest lender Westpac Banking Corp <WBC.AX> reversed early losses to end 2% higher, even after the bank said it expected lower first-half earnings and higher credit losses.
New Zealand's benchmark S&P/NZX 50 index <.NZ50> gained 2% or 195.12 points to finish the session at 10,159.02, a more than one-month high.
Dairy producer A2 Milk Company <ATM.NZ> gained over 5.2%, while New Zealand-listed shares of lender Westpac Banking Corp <WBC.NZ> gained 2.5%. (This story corrects second paragraph to show that Australian index closed at 5,488.10, not 5,387.3. It also corrects paragraph 12 to show that New Zealand index closed at 10,159.02, not 9,963.90)
(Reporting by Arpit Nayak; editing by Uttaresh.V)
