The market value of Australia’s top 200 companies increased by nearly $33 billion on Monday as the local bourse notched up its biggest one-day gains since May. The shopping spree was driven by strong demand for blue-chip stocks and news of a good outcome in the trade negotiations between China and the United States.
However, the trade news did not boost all markets and Australia outperformed other major Asian indices, such as the Hang Seng and Nikkei, which closed lower.
The S&P/ASX 200 closed 1.6 per cent higher at 6849.7 points, a gain of 110 points. This was just short of the all-time high closing price of 6864 reached on November 28.
Market analyst at Bell Direct, Jessica Amir, says Australia’s market has been underperforming this month compared to Wall Street and is just catching up. The ASX typically increases by up to 2.5 per cent over the summer but is currently only 0.2 per cent higher.