ASX ends session 74 points higher
Westpac's surprise-free half-year result helped the ASX turn an opening fall into a strong gain, despite the spectre of record high unemployment later this year.

The S&P/ASX 200 ended Monday's session 1.4 per cent higher at 5319.8, partly repairing Friday's 5 per cent decline. The market was boosted by stronger than expected building approvals, down 4 per cent instead of an expected 15 per cent, and seemed to brush off a halving in the ANZ Job Ads index.

The financials sector added the most points, while energy was the only sector to close in red. Within financials, Westpac gained 2.8 per cent to $15.77, ANZ Bank gained 2.5 per cent to $16.15, and NAB gained 2 per cent to $16.46. Commonwealth Bank gained 1.8 per cent to $59.88. Macquarie Bank dropped as much as 3.4 per cent in the morning before closing 0.3 per cent higher at $97.23.

Volumes were below average for this year at about $830 million.

Afterpay soars above pandemic concerns with Tencent deal By Colin Kruger
May 4, 2020 — 5.19pm
Afterpay soared above any COVID-19 concerns on Monday with the stock trading just short of record highs on hopes that its new Chinese investor, WeChat owner Tencent, could potentially unlock the path for the buy now, pay later company to expand into new markets, including China.
"We believe the big prize is clearly geographic expansion, particularly China , which is obviously a substantial market," said RBC analyst Tim Piper.
"It would have been very hard, if not nearly impossible, for Afterpay to enter China without a strategic partner."
The stock soared more than 35 per cent when the market opened to a high of $39.59 in reaction to the news Tencent had acquired a $300 million stake on market and both parties talked of the opportunities flowing from the investment.
The intraday high was not far short of its record high above the $40 mark in February. Afterpay shares had plummeted to a low of $8 in March as fears about what the pandemic-induced recession would do its business. The company's shares closed the session on Monday 24 per cent higher at $36.10.
Afterpay founders Anthony Eisen and Nick Molnar said collaboration and expansion opportunities were on the agenda but cautioned their focus right now remains on the current business.
“We remain focussed on growth and momentum in our current markets but expanding into more countries and regions over time is a point that we’ve discussed and is recognised as being an opportunity," said Mr Molnar.
Whatever the plans, the Tencent investment underlines the global focus currently on the buy now, pay later sector.
Grant Halverson, a financial institution advisor and enterprise capital veteran from McLean Roche, said the sector is now coalescing into a global battle between three behemoths with Mastercard and Visa the notable absentees.
"Tencent’s 5 per cent investment in Afterpay Australia sits alongside Ant Financial's (Alibaba/AliPay) investment in Klarna and Bertelsmann’s outright purchase of Afterpay Europe," he said.
He also pointed out that both Wechat started offering buy now, pay later services in March this year and Alibaba's AliPay also offers the payment service to customers.
Afterpay is not Tencent's only Australian investment. The Shenzhen-based compay also has a stake in Australian start-up Airwallex, as well as stakes in Tesla and Spotify, according to McLean Roche.
As Afterpay works out how its collaboration with Tencent will progress, security experts will be watching closely.
“I think healthcare data is much more sensitive and potentially useful for espionage activity … but consumer level datasets like this are also helpful,” said Fergus Hanson a director of the Australian Strategic Policy Institute.
Afterpay has said Tencent will not have a board seat and normal investor governance protocols will apply.

https://www.smh.com.au/business/companies/afterpay-soars-above-pandemic-concerns-with-tencent-deal-20200504-p54pkq.html