Australia Markets close in 2 hrs 55 mins

ASX finishes up 4% despite overseas dips

Anastasia Santoreneos
·2-min read
ASX rises at open. Can it last? Source: Getty
ASX rises at open. Can it last? Source: Getty

The ASX200 has rallied, with all sectors posting gains in response to news the coronavirus was plateauing in Europe.

The ASX200 finished Monday up 4.33 per cent, while the All Ords rose 4.24 per cent.

One Australian dollar was buying 60.42 US cents, down from 60.63 US cents at the close of market on Friday.

What happened this morning?

Australian stock markets have risen at the open, despite a dip on Wall Street at the end of last week.

The benchmark ASX200 was up 1.42 per cent at 10.12 AEDT, after finishing down 1.68 per cent on Friday.

The broader All Ordinaries also rose 1.45 per cent.

All sectors began the week strongly, with energy, tech, property, financials, and consumer staples and discretionaries each climbing more than 2.0 per cent.

The health sector led the pack with a collective 3.01 per cent gain.

In the financials sector, NAB, ANZ, Westpac and Macquarie Group each gained between 1.77 per cent and 5.12 per cent.

But the early rise may not last long, with economists warning the Aussie share market could drop on more announcements about the coronavirus.

"Just as is the case for everyone currently, market participants' decision-making centres on what success health authorities – especially those in Europe and the US – are having in ‘flattening the curve’ of new COVID-19 cases," IG Markets analyst Kyle Rodda said.

One Australian dollar was buying 59.98 US cents at 0800 AEDT on Monday, down from 60.63 US cents at the close of market on Friday.

What happened overnight in the US?

Wall Street's main indexes fell more than 1.5 per cent on Friday after US employment data showed a huge drop in jobs amid the COVID-19 pandemic.

The Dow Jones Industrial Average fell 1.69 per cent, the S&P 500 lost 1.51 per cent, and the Nasdaq Composite dropped 1.53 per cent.

The S&P 500 closed down almost 27 per cent from its mid-February record high close, which equates to a loss of around US$7 trillion in market value.

With AAP.

Make your money work with Yahoo Finance’s daily newsletter. Sign up here and stay on top of the latest money, news and tech news.

Follow Yahoo Finance Australia on Facebook, Twitter, Instagram and LinkedIn.