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Australian Market Advances

The Australian stock market is advancing on Wednesday following the positive cues overnight from Wall Street as worries about trade tensions eased after the U.S. said it will delay imposing tariffs on certain Chinese products. Upbeat earnings results from healthcare giant CSL also lifted stocks.

The benchmark S&P/ASX 200 Index is adding 26.00 points or 0.40 percent to 6,594.50, after rising to a high of 6,600.70 earlier. The broader All Ordinaries Index is up 27.20 points or 0.41 percent to 6,675.30. Australian stocks edged higher on Monday.

The big four banks are mostly higher. National Australia Bank, Westpac and ANZ Banking are higher in a range of 0.2 percent to 0.7 percent, while Commonwealth Bank is edging down 0.1 percent.

National Australia Bank reported third-quarter cash earnings that was flat with the year-ago quarter and said it expects more provisions with its full-year results.

The major miners are notably higher. Fortescue Metals is gaining almost 4 percent, Rio Tinto is rising more than 3 percent and BHP Group is advancing more than 1 percent.

Oil stocks are up after crude oil prices gained 4 percent overnight. Santos and Woodside Petroleum are advancing more than 1 percent each, while Oil Search is rising 0.7 percent.

Bucking the trend, gold miners are weak after gold prices declined overnight. Evolution Mining is losing more than 5 percent and Newcrest Mining is lower by more than 2 percent.

CSL reported a 11 percent increase in full-year profit on higher revenues. The healthcare giant's shares are rising more than 6 percent.

Tabcorp Holdings reported a more than twelve-fold surge in full-year profit in its first full-year of combined operations with Tatts Group, and increased its final dividend. However, the wagering giant's shares are down 0.2 percent.

Aveo Group has agreed to be acquired by Brookfield Asset Management for A$1.27 billion and its board has unanimously recommended the offer. The retirement home operator's shares are gaining almost 6 percent.

On the economic front, Australia will see August results for the consumer confidence index from Westpac Bank as well as second-quarter data on wage prices.

In the currency market, the Australian dollar is higher against the U.S. dollar on Wednesday. The local currency was quoted at $0.6793, compared to $0.6761 on Tuesday.

On Wall Street, stocks closed higher on Tuesday after U.S. Trade Representative Robert Lighthizer offered a temporary reprieve from concerns about the U.S.-China trade war by announcing that a 10 percent tariff set to take effect on September 1st should be delayed until December 15th for certain products. Additionally, the USTR announced certain unidentified products will be removed from the tariff list entirely based on health, safety, national security and other factors.

The Dow jumped 372.54 points or 1.4 percent to 26,279.91, the Nasdaq soared 152.95 points or 2 percent to 8,016.36 and the S&P 500 surged up 43.23 points or 1.5 percent to 2,926.32.

The major European markets showed a significant rebound after coming under pressure earlier on Tuesday. While the French CAC 40 Index surged up by 1 percent, the German DAX Index climbed by 0.6 percent and the U.K.'s FTSE 100 Index rose by 0.3 percent.

Crude oil prices shook off early weakness and moved sharply higher on Tuesday after U.S. Trade Representative Robert Lighthizer announced a delay in imposing new tariffs on certain Chinese products. WTI crude for September soared $2.17 or 4 percent to $57.10 a barrel.

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