The Australian stock market soared past the 5100 mark in late trade to sit more than 1% higher, led by a surge in the major iron ore miners on a rise in commodity prices, with encouraging economic indicators out of China last week still fresh in investors’ minds.
At 1615 AEST, the benchmark S&P/ASX200 index rose 1.06% to 5,108.7 points, while the broader All Ordinaries index added 1.09% to 5,093.8 points.
IG market analyst Chris Weston said some of the moves in the resources space since late June had been “spectacular”.
“Since June 25, the ASX 200 has rallied 9.8%, however FMG has put on 49%, BHP 21%, AGO 43%, while NCM has gained 33%,” Mr Weston said.
“Momentum is clearly in the space at present and this is the space to be leveraged too right now.”
CMC Markets senior trader Tim Waterer said fervent buying in materials appeared to rub off on the broader market.
“The recent batch of Chinese indicators from last week is still fresh in the minds of investors who are now feeling more at ease about the growth prospects of the world’s second largest economy,” he said.
In economic news on Monday, Australian Bureau of Statistics data shows personal finance commitments slipped in June.
In Australia, the market on Friday closed slightly lower after being dragged down by the banks despite a late rally.
The benchmark S&P/ASX200 index was down 9.6 points, or 0.19%, at 5,055.2 points, while the broader All Ordinaries index was down 8.3 points, or 0.16%, to 5,038.8 points.