ASX shrugs off fears to roar ahead

THE Australian share market is at its highest level in more than 10 years, with significant gains across most sectors yesterday as investors looked past fears of a looming trade war between the US and China.

The ASX200 index was up 59.5 points, or 0.96 per cent, to 6232.1, while the All Ordinaries was up 58.3 points, or 0.93 per cent, to 6332.9 points.

Following strong leads overnight in overseas markets, local shares opened higher and continued to climb throughout the day.

Consumer stocks rose as the Coalition’s $144 billion income tax cuts package cleared Parliament around noon.

Woolworths ended the day up 1.8 per cent, or 5.3c at $29.94, while Coles supermarkets owner Wesfarmers was up 2.6 per cent, or $1.25 to $48.78.

Penfolds wine maker Treasury Wine Estates and poker machine maker Aristocrat Leisure were up too as companies with significant operations overseas, and therefore an exposure to changes in exchange rates, benefited from a lower Aussie dollar.

AMP Capital chief economist Shane Oliver said he was surprised by the strong day given the continuing stand-off between the US and China over tariffs.

“It is a bit surprising the market has gone up,” he said.

“I would have thought Australia is fairly sensitive to a trade war, particularly with China. If it does eventuate, I think the Australian market would take a bit of a hit.”

The big four banks were all stronger, led by Commonwealth Bank’s gain of 1.4 per cent at $72.90, while BHP Billiton was the strongest of the big miners, up 0.5 per cent at $32.76.

The Australian dollar remained under pressure, trading at 73.49 US cents last night, from 73.99 on Wednesday — it’s lowest level since January 2017. AAP