ASX edges higher on virus recovery hopes

Shares on the Australian market are higher in early trade with local investors taking a lead from overnight gains on Wall Street led by hopes of economic recovery.

The S&P-ASX200 benchmark index was up 17.1 points, or 0.31 per cent, at 5590.1 points after the first 30 minutes of trade on Thursday.

The all ordinaries index was 18.3 points, or 0.32 per cent higher, at 5698.4.

Most sectoral indices were higher, and energy rose the most, by 2.23 per cent.

Oil Search, Santos and Beach Energy were trading between 2.0 to 3.0 per cent higher after crude oil prices rallied.

Industrials was the next best sector, higher by 0.79 per cent, followed by information technology, which was better by 0.75 per cent.

The tech sector was boosted by gains in Afterpay, which said it continued to see strong growth in the US and had more than five million active shoppers in that market.

Afterpay shares hit an all-time high of $45.17 early and were still trading more than 3.0 per cent higher to $44.41.

Meanwhile in consumer discretionary space, gaming provider Aristocrat Leisure outlined the impact of coronavirus on its first half results.

The closure of casinos, pubs and clubs meant its net profit was down more than 14.0 per cent to $305.9 million.

Many venues around the world are yet to re-open, and Aristocrat shares fell by more than 6 per cent to $25.50.

The financials and materials sectors were only slightly ahead - up 0.17 and 0.36 per cent respectively.

The big four banks were all down. Each had losses of less than 1.0 per cent.

Macquarie Bank helped keep the sector positive. Its price gained less than 1.0 per cent to $105.67.

There were varied results for the big miners. BHP was higher by less than 1.0 per cent to $34.86, Rio was up by more than 1.0 per cent to $95.35 and Fortescue was down by less than 1.0 per cent to $13.89.

The ASX’s slight gain comes after the three major Wall Street indices finished higher overnight as investors bet on a swift economic recovery from coronavirus- driven lockdowns and the potential for more stimulus measures from the Federal Reserve.

In Australia on Thursday, the heads of APRA, ASIC and the Reserve Bank will discuss their COVID-19 response in an online forum held by the Financial Services Institute of Australasia.

The Australian dollar was buying 65.77 US cents at 1030 AEST, up from 65.43 US cents on Wednesday.