Australian shares climbed on Wednesday, spurred by a record night on Wall Street ahead of a key US tax vote, with financials and material stocks boosting the benchmark.

US Senate Republicans pushed forth with President Donald Trump’s tax-cut bill on Tuesday in a partisan committee vote that paved the way for a full vote by the Senate as soon as Thursday.

Wall Street was also boosted on Tuesday by strong consumer confidence data and encouraging comments from Jerome Powell, President Donald Trump’s nominee to lead the Federal Reserve.

The S&P/ASX 200 index ended 0.5 per cent or 26.848 points higher at 6011.1.

The financial sector, which accounts for 40 per cent of the benchmark index weighting, tracked its Wall Street peers higher to rise 0.6 per cent, its biggest daily per centage gain in nearly two months.

“I think the key driver today is the rally in US markets, which has spelled confidence in our markets,” said Ric Spooner, Chief market strategist at CMC Markets.

Australia’s ‘Big Four’ banks gained between 0.5 per cent and 0.8 per cent.

Resources stocks got a lift with mining giant BHP Billiton up 1 per cent as Chinese steel futures jumped for a third straight session on Wednesday, touching a six-week high.

Peers Rio Tinto and Newcrest Mining also contributed to overall gains, adding 0.2 per cent and 0.8 per cent, respectively.

On the opposite end of the spectrum, the healthcare index snapped a nine day rally to fall 0.5 per cent, with bio-therapeutics company and healthcare sector heavyweight CSL Ltd leading losses with a 0.8 per cent decline.

 

Source: REUTERS