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The S&P/ASX 200 index closed 1.1% higher at 7,049.2, having gained 0.4% on Wednesday.

Asian shares also cheered Beijing’s unexpected announcement, which could ease one of the biggest risks to global economic growth that has also been threatened by the coronavirus epidemic in China, Australia’s biggest trade partner.

The decrease in tariffs was widely read as a positive step towards resolving the Sino-U.S. trade conflict following the signing of a Phase 1 trade deal in January, CommSec market analyst James Tao said.

The financials subindex ended 1.4% higher, underpinned by gains in the “Big Four” banks.

The country’s two biggest lenders Commonwealth Bank of Australia and Westpac Banking Corp advanced 1% and 1.7%, respectively.

Sentiment was also supported by a firmer finish on Wall Street on Wednesday after encouraging U.S. economic data.

Traders cited unconfirmed reports of possible medical advances for the coronavirus as a trigger for Wednesday’s rally, although they also said such a catalyst was likely to be an excuse for short-covering.

The World Health Organization, however, played down media reports of “breakthrough” drugs being discovered to treat people infected with the new virus.

Strength in copper prices helped mining stocks extend gains into a third consecutive session.

Heavyweights BHP Group and Rio Tinto Ltd, which together own the majority of the world’s biggest copper mine in Chile, added 1.7% and 0.7%, respectively.

The healthcare subindex rose 1.2% to close at a record high, as heavyweight CSL Ltd surged 1.6% after Morgan Stanley upgraded the company’s rating and price target.

Meanwhile gold stocks suffered a second straight session of losses as investors moved away from the safe-haven asset.

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