Australian shares ended 1 per cent higher on Wednesday to their highest level since May 2008, bolstered by a $5.1-billion takeover of Toll Holdings and on broad-based gains across all sectors.
The positive mood also allowed the market to navigate the past weak corporate earnings, pushing the index to 5,915.7 points, up 57.49 points at the close of trade. The benchmark eased 0.5 per cent on Tuesday.
Toll Holdings rose 47.2 per cent after Japan Post Holdings Co Ltd agreed a A$6.5-billion ($5.1-billion) takeover of the Australian freight and logistics firm.
“The big news today has been the takeover offer for Toll Holdings ... which has lit a fire under the bulls,’’ Chris Conway, Head of Research at Australian Stock Report, said in a note.
“The bulls generally love a juicy M&A deal and that’s what they have focussed on today, rather than some of the poor results from other companies.’’
Ardent Leisure, Insurance Australia and Primary Healthcare slumped 5-15 per cent on dismal earnings.
New Zealand’s benchmark NZX 50 index ended down 0.15 per cent or 8.85 points at 5,741.36.