SYDNEY, , (Pakistan Point News - APP - 10th Nov, 2016 ) - Australian stocks surged more than three percent Thursday in one of their best sessions for years on the back of a commodity rally with investors betting US president-elect Donald Trump will pursue business-friendly policies. At the close, the S&P/ASX 200 was up 3.34 percent, or 172.2 points, at 5,328.8, following global markets higher after the Republican candidate's shock win over Hillary Clinton.
CMC Markets strategist Michael McCarthy said it appeared a consensus was building "that much of the policy announced during the campaign was a sales pitch rather than a commitment to act". "Investors ignored the potential for damage to international trade and growth prospects and focused on Republican control of both houses of Congress as well as the White House. "This offers the prospect of reform that could stimulate the US economy," he added.
The Sydney market last posted such gains in October 2011, with IG Markets chief strategist Chris Weston saying it followed strong buying in commodities such as iron ore, steel and copper, as a well as boost in oil prices. Among the big gainers was global miner BHP, which spiked 8.25 percent to end at Aus$24.42, while Rio Tinto jumped 8.19 percent to Aus$58.13. The Australian Dollar firmed after Trump's win initially sent risk currencies plummeting, and was trading at 76.62 US cents, up from 76.19 US cents late Wednesday.