Australia and New Zealand stock indexes on Tuesday surged to their highest in more than two months, fuelled by mounting hopes of a global economic recovery as more countries emerge from the coronavirus-induced lockdown.
The S&P/ASX 200 index <.AXJO> advanced more than 2% for the second straight session and ended 2.9% firmer at 5,780 points. The benchmark hit the highest level since March 11 and enjoyed its best session since April 9.
In New Zealand, which reported a monthly trade surplus in April, the main S&P/NZX 50 bourse <.NZ50> closed 1.3% higher at 10,914.74 points after touching its highest since March 11.
Japan on Monday joined a growing list of countries that have relaxed curbs instated to contain the spread of the pandemic. Meanwhile, China vowed to strengthen its economic policy and continue efforts to lower lending rates to revive its economy.
"Months out from reporting season and with plenty of noisy and backward-looking headline data we don't have much to hold onto except hope, and that's what this recovery trade we are seeing this week is based on," analysts at RBC Capital markets said.
In Australia, Prime Minister Scott Morrison called for an ideological truce between employers and workers to revive the economy, but said the country would not open its borders "anytime soon".
All sub-indexes on the Aussie index firmed, gaining between 1.7% and 4.3%.
Buy-now-pay-later firm Afterpay <APT.AX>, whose shares have hit successive record levels in recent weeks, scaled a fresh peak and breached the A$50 mark for the first time ever. The stock ended up 0.4%.
However, New Century Resources <NCZ.AX> tumbled 6% after the zinc miner confirmed talks to buy Vale SA's <VALE3.SA> nickel and cobalt operations on the Pacific island of New Caledonia.
New Zealand's Tourism Holdings <THL.NZ> jumped 10% after the travel company said it would restructure parts of its business.
Tensions between the United States and China continued to simmer following Beijing's proposals for stricter security laws in Hong Kong, but failed to deter investors across Asia from moving towards risky assets. [GLOB/]
"What is clear is that the peak-virus trade continues to maintain its strong positive momentum," said Jeffrey Halley, senior market analyst, Asia Pacific at OANDA.
"Negative headlines on trade and security may cause short-term falls, but they appear to provide dips to get longer rather than structural changes in sentiment."
(Reporting by Shashwat Awasthi in Bengaluru, Editing by Sherry Jacob-Phillips)
