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Biggest gains on ASX since August 2

Steven DeareAAP
Energy and technology shares were leading a higher ASX.
Camera IconEnergy and technology shares were leading a higher ASX. Credit: AAP

Shares on the ASX had their biggest rise since August 2 following a global relief rally for the still-troubled property giant Evergrande.

Technology and energy shares were best in Australia's broad-based rally, which mimicked the US lead.

Afterpay was among the big movers and climbed 4.21 per cent to $131.54.

Most Asian markets also closed higher on Thursday after Evergrande committed to paying $US83.5 million interest on bonds.

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It is the first step in paying $US305 billion in debt and avoiding a far-reaching financial disaster.

ThinkMarkets analyst Carl Capolingua said investors appeared unconcerned with the US monetary policy decisions overnight.

"I just think we're focusing on Evergrande today," he said of the ASX rally.

"People got more worried than they probably should have."

The Federal Reserve deferred changes on rates and the easing of monthly bond purchases. These have helped the economy through the pandemic.

The central bank suggested rate increases may follow the easing of stimulus more quickly than expected.

In Australia, the heads of big retail banks are becoming concerned about the heated housing market.

Commonwealth Bank boss Matt Comyn told politicians housing debt was increasing while housing prices continued to rise.

He said the bank will take modest steps to cool the market rather than be told by the regulator.

In trade, the benchmark S&P/ASX200 index closed higher by 73.3 points, or 1.0 per cent, to 7370.2.

The All Ordinaries closed up by 87.5 points, or 1.15 per cent, to 7681.3.

The banks were all higher. Bendigo rose 1.74 per cent to $9.35.

Miners did not fare as well. BHP lost 0.72 per cent to $38.38. Fortescue gained 1.04 per cent to $15.53. Rio Tinto climbed 0.6 per cent to $98.86.

Premier Investments boss Solomon Lew called on shopping centre owners to take more responsibility for coronavirus safety during full-year earnings discussion.

He wants shoppers checked prior to entry rather than the burden falling on stores.

Premier is betting on a bumper Christmas after lockdowns in some states.

Net profit rose 97.3 per cent to $271.8 million for the year ended July 31.

Shares were up 3.06 per cent to $27.63.

Investment group Washington H.Soul Pattinson had full-year profit drop 71 per cent due to an accounting gain on TPG the year prior.

Pattinson's best investments for the year ended July 31 were Brickworks, coalminer New Hope and Round Oak Minerals.

Investors will be paid a fully franked final dividend of 36 cents per share. This is higher than the previous final payout of 35 cents per share.

Shares were up 5.95 per cent to $37.74.

Brickworks posted higher full-year earnings from its Australian and North American businesses.

Net profit after tax fell 20 per cent to $239 million for the 12 months to July 31, although this was due to a prior year profit in its stake in Washington H Soul Pattinson.

The final dividend of 40 cents per share was higher than the previous final payout of 39 cents per share.

Shares were up 2.41 per cent to $25.06.

The Australian dollar was buying 72.54 US cents at 1723 AEST, the same as at Wednesday's close.

ON THE ASX

* The benchmark S&P/ASX200 index closed higher by 73.3 points, or 1.0 per cent, to 7370.2 on Thursday.

* The All Ordinaries closed up by 87.5 points, or 1.15 per cent, to 7681.3.

* At 1723 AEST, the SPI200 futures index was down eight points, or 0.11 per cent, at 7340 points.

CURRENCY SNAPSHOT

One Australian dollar buys:

* 72.54 US cents, from 72.54 cents on Wednesday

* 79.76 Japanese yen, from 79.42 yen

* 61.92 Euro cents, from 61.83 cents

* 53.16 British pence, from 53.11 pence

* 103.41 NZ cents, from 103.20 cents.

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