Aust stocks close higher

Local market lifts on upbeat economic data from China and locally.

The Australian stock market shrugged off weak Wall Street leads to close 1% higher on upbeat economic data from China and locally.

At 1615 AEST official market close, the benchmark S&P/ASX200 index rose 1.04% to 5,188.3 points, while the broader All Ordinaries index added 1.03% to 5,178 points.

HSBC figures showed activity in China's manufacturing sector expanded in August, but fell just short of expectations, while local building approvals jumped over 10%, beating expectations of a more modest rise.

CMC Markets analyst Tim Waterer said the prints allowed the local market to disregard negative offshore leads.

"The healthy looking Chinese indicators appeared to give investors the ‘green light’ to take on board risk and this resulted in good buying momentum across high-yielding assets today," Mr Waterer said.

"However as the week progresses and we start to see some United States jobs numbers released, I am sure the market will again refocus on possible tapering efforts and the potential growth implications of this."

Want access to our latest research and new buy ideas?

Start a free 15 day trial and gain access to our research, recommendations and market-beating model portfolios.

Sign up for free