Australian shares closed higher on Thursday, rebounding from a more than 2% drop in the previous session, boosted by stimulus talks and hopes of further easing in coronavirus restrictions in the country.
The S&P/ASX 200 index <.AXJO> added 1% to finish at 5,872.9, snapping a three-day streak of losses.
Australian government announced a A$1.5 billion ($1.08 billion) package to revive manufacturing across six sectors as part of a plan to get the economy out of its first recession in three decades.
Aiding sentiment was a headway made by U.S. lawmakers for a new $2.2 trillion pandemic relief package, which helped Wall Street post an upbeat close and exit the September quarter in black. [.N]
"Overnight rebound in Wall Street on talks that the U.S. congress was close on stimulus plans only helps boost the sentiment," said James Tao, market analyst at CommSec.
"Sentiment is a lot more positive compared with just 24 hours ago, and these stimulus talks certainly make a huge difference," Tao added.
Meanwhile, easing of border restrictions between Queensland and New South Wales also helped the market, while low new daily cases in Victoria kept the hopes of a "COVID-normal" 2021 without lockdowns alive.
All three major sub-indexes jumped, with miners <.AXMM> leading the pack. Global iron ore mining giants BHP Group <BHP.AX> and Rio Tinto <RIO.AX> advanced up to 1.9% and 1.2%, respectively.
Financials <.AXFJ> were lifted by Commonwealth Bank of Australia <CBA.AX> and Australia and New Zealand Banking Group <ANZ.AX>, which rose 0.7% and 1%, respectively.
In New Zealand, the benchmark S&P/NZX 50 index <.NZ50> ended 0.6% higher at 11,812.73, boosted by financials and healthcare sectors.
Dairy firm a2 Milk Co <ATM.NZ> continued its losing streak, slipping 1% to post its lowest close since March 17.
(Reporting by Sameer Manekar in Bengaluru; editing by Uttaresh.V)
