Mon, 10 Aug 2020

Stocks in Australia rebound with sharp relief rally

Lola Evans
20 May 2019, 18:14 GMT+10

SYDNEY, Australia - Australian stocks soared on Monday, the first trading day since the sitting Liberal-National Party Coalition was re-elected for a new 3 year term.

Elections were held on Saturday and it was widely predicted the Australian Labor Party would take office. Current Prime Minister Scott Morrison however easily defeated his opponent Bill Shorten.

The Australian dollar roared ahead in line with stocks, both markets hitting on a relief rally, as well as reflecting investors being more optimistic about Australia's economic future. The party however may not last as the economy is struggling, interest rates are near an all-time low and are likely to be pushed lower, and inflation is comatose.

At the close of trading Monday, the Australian All Ordinaries had added 104.50 points or 1.62% to close at the lofty heights of 6,564.70.

In Tokyo the Nikkei 225 rose 51.64 points or 0.24% to 21,301.73.

In China, the Shanghai Composite fell 11.69 points or 0.41% to 2,870.60.

In late trading in Hong Kong Monday, the Hang Seng was off 184.05 points or 0.66% at 27,762.41.

The Australian dollar rose sharply to 0.6931 in forex markets Monday. The euro was weak at 1.1160 around the Sydney close on Monday. The British pound too was friendless at 1.2745.

The Japanese yen was soft at 110.08, while the Swiss franc eased to 1.0104.

The Canadian dollar edged higher to 1.3426, as did the New Zealand dollar which finished the day in Asia around 0.6543.

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