Australian shares end at five-week peak on U.S.-Iran ceasefire

By Nikita Maria Jino

April 8 (Reuters) - Australian shares jumped more than 2% on Wednesday to their highest in five weeks as a last-minute U.S.-Iran ceasefire pushed oil below $100 a barrel and sparked broad buying in equities.

The S&P/ASX 200 index .AXJO closed 2.6% higher at 8,951.80, its highest since March 3 and its biggest one-day gain in a year, taking year-to-date gains to 2.7%.

Australian stocks, which fell about 8% in March, joined a global relief rally after U.S. President Donald Trump agreed to a two-week ceasefire with Iran and Tehran said safe transit through the Strait of Hormuz would be possible, pushing oil below $100 a barrel. MKTS/GLOB O/R

The pullback in oil prices offers welcome relief for Australia, which is already grappling with stubborn inflation.

"There was a clear sense over the past week that markets have been itching for an opportunity to buy the dip after recent weakness," said Justin Lin, investment strategist at Global X ETFs.

"This latest ceasefire provides the excuse for investors to put all that capital back to work. A move back toward the key 9,000-level for the ASX 200 appears well within reach this week, provided negotiations hold."

On the bourse, the resources sub-index .AXMM advanced 4.6% to hit its highest in a month. BHP BHP.AX and Rio Tinto RIO.AX rose 3% and 4.4%, respectively.

Financials .AXFJ gained 2.8%, driven by "Big Four" banks, which rose between 1.9% and 3.9%.

Energy stocks .AXEJ crashed 7.2% to their lowest since March 18. Woodside Energy WDS.AX and Santos STO.AX slid 10.5% and 4.1%, respectively.

Elsewhere, tech stocks .AXIJ surged 7.3%, while the gold sub-index .AXGD jumped 8.8%. Healthcare .AXHJ, consumer discretionary .AXDJ and real estate .AXRE stocks advanced between 2% and 4%.

New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 1.4% to close at 13,253.94, their highest in three weeks.

The country's central bank held onto its cash rate but flagged that it is ready to take action if inflation pressures intensify as the Middle East crisis drives up fuel and transport prices.

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