SYDNEY – Australia’s benchmark ASX200 index reached on Tuesday a record high of 6,874.7 points in the first hour of trading, before closing at 6,845.10, also a record.
This new record surpassed the 6,851.5 points that the Australian index reached on Nov. 1, 2007, shortly before the international financial crisis.
The ASX200’s highest closing record is 6,828.7 points recorded on Nov. 1, 2007.
Entities such as debt recovery company CreditCorp (4.11 percent), gold miner Newcrest Mining (3.08 percent) telecommunications firm TGP Telecom (2.19 percent) and the media house Nine Entertainment (2.05 percent) marked major gains during the day.
The milestone comes nearly 12 years after the collapse of the US housing bubble, which later spread around the world, although Australia weathered the storm more easily thanks to the country’s low debt and strong industry-based growth Extractive.
It has taken Australia almost 12 years for its market to breach its earlier high, which preceded the 2008 economic crisis owing to the bursting of the real estate bubble in the United States, which later spread around the world.
However, Australia weathered the storm relatively easier thanks to the country’s low debt and strong growth based on extractive industries.
The country’s long road to recovery in the stock market, backed by sturdy economic figures and public investment, was completed amid a period of global uncertainty over trade tensions between China and the US.
Australia has so far managed to evade the consequences of the friction between the world’s two biggest economies, riding on the performance of its mining sector, besides optimism over expectations that US Federal Reserve would soon cut interest rates, reducing the cost of financing for major Australian banks.
“There is global optimism that central banks will do what it takes to support economic activity in a low inflation/low wage environment,” said economist Craig James, according to state run broadcaster ABC.