(Reuters) - Australian shares rose on Thursday with financials and materials stocks leading the gains, as a weaker local currency increased foreign interest in the market and boosted export-focused firms.
The S&P/ASX 200 index <.AXJO> rose about 1 percent, or 59.50 points, to 6,232.10 at the close of trade. The benchmark added 1.2 percent on Wednesday.
"It’s been outperforming over the last few sessions, so clearly a lower Australian dollar helps make Australian shares more attractive to international investors," said Michael McCarthy, chief strategist at CMC Markets and Stockbroking.
The Australian dollar <AUD=> has been hit hard by intensifying trade tensions between the United States and China, falling to one-year lows this week. China is Australia's single biggest export market and the largest buyer of its commodities.
Financials stocks <.AXFJ>, which account for nearly half of the benchmark, underpinned the bullish trend on Thursday, climbing 1 percent to their highest since May 10.
The country's "big four" banks firmed between 0.5-1.4 percent and were among the biggest boosts to the benchmark.
Materials also climbed, lifted by higher prices for iron ore. Global miner BHP <BHP.AX> jumped 0.5 percent, while rival Rio Tinto Ltd <RIO.AX> firmed 0.4 percent.
Health care stocks, which generate a substantial portion of their income from the United States, also benefited from the weaker Aussie dollar, with pharmaceutical firm CSL Ltd <CSL.AX> jumping 2.4 percent to a record high.
Meanwhile, APN Outdoor Group Ltd <APO.AX> surged 12.1 percent and was the best performer on the benchmark after it got a A$1.09 billion ($801.80 million) takeover offer from French advertising company JCDecaux <JCDX.PA>.
But telecom services fell, driven lower by Telstra Corporation Ltd <TLS.AX> which dipped 1.4 percent.
In New Zealand benchmark S&P/NZX 50 index <.NZ50> rose about 1 percent or 92.99 points to finish the session at 8,998.78.
Consumer staples accounted for most of the gains, with a2 Milk Company Ltd <.NZ50> surging 3.5 percent to its highest since May 15.
Fletcher Building Ltd <FBU.AX> also aided the upward charge, surging 4.2 percent, after saying it will consolidate its Australian operations into one division.
(Reporting by Aditya Soni in Bengaluru; Editing by Sam Holmes)
