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Australian shares gained on Tuesday, buoyed by financials and resource-based stocks, as the US decision not to impose tariffs against Mexico eased some concerns about global trade tensions. The S&P/ASX 200 index closed up 1.6%, or 102.4 points, to 6,546.30, its highest level since December 2007. The benchmark was closed on Monday for a holiday, but gained for a fifth straight trading session.

Mexico on Friday agreed to curb the flow of Central American migrants across the border, leading to the United States suspending the proposed 5% tariffs on Mexican goods.

The metals and mining index advanced 1.3% boosted by a rise in iron ore and base metal prices. Global miners BHP Group and Rio Tinto rose 2.3% and 2.6%, respectively, while iron ore miner Fortescue Metals Group added 3.2%. Financials gained for a fifth straight session, supported by hopes that last week's rate cut by the Reserve Bank of Australia's would shore up the slowing economy.

Healthcare stocks, which have large exposure to the US market, gained 3.5% to hit a more than 9-month closing high. Index heavyweight CSL Ltd advanced 4.3%, while medical device maker Cochlear Ltd rose 3%. Telecom firm Vocus Group gained 8.9% and was among the best performers on the Australian benchmark following a fresh A$3.02 billion ($2.10 billion) offer from AGL Energy.

Gold stocks declined 2%, with Northern Star Resources slipping 4.2% and Regis Resources ending down 4.4%. New Zealand's benchmark S&P/NZX 50 index ended up 1.1% or 111.54 points to 10,139.15.

Copyright Reuters, 2019


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