The government is expected to forecast a record budget deficit of around A$200 billion for 2020/21, and include provisions for tax breaks and spending on infrastructure and wage subsidies in the budget.
Prime Minister Scott Morrison has repeatedly called this budget the most important since the World War II, as the government tries to lift the virus-ravaged economy out of a technical recession. Among sectors, financials fell 0.6 per cent, with the so-called"Big Four" banks falling in the range of 0.6 per cent to 1 per cent.
Australia's second-largest insurer Insurance Australia Group fell as much as 1.7 per cent after agreeing to a class action settlement of A$138 million over mis-sold insurance.On the other hand, gold stocks surged 3 per cent as prices of the underlying commodity rose on US stimulus hopes and against a weakening greenback.
The country's largest independent gold explorer Newcrest Mining jumped nearly 2 per cent as it received conditional approval to list on the Toronto Stock Exchange.Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index rose 0.3 per cent, helped by buying in utility and consumer stocks.For daily updates on weekdays and specially selected content for the weekend. Subscribe to