Election result, China push shares to a high
data.
Stocks are also being boosted by the need for major construction projects in Japan – Australia’s second-largest trading partner – ahead of the 2020 Olympics.
Easing anxiety over Syria after Russia suggested that Syria place its chemical weapons under international control has also influenced trade.
The latest gains came as the Australian dollar has hit a six-week high as investors get increasingly optimistic about the global economy.
Major resources companies, the big banks and other blue-chip stocks had led the Australian market higher, Lonsec senior client adviser Michael Heffernan said.
‘‘The result of the election has injected a bit of confidence and positive sentiment. That’s flowed over yesterday and today,’’ he said.
Economic data from China indicated the Chinese economy was performing quite well, boosting Australian resources stocks.
BHP Billiton rose 26¢ to $35.90, Rio Tinto added 93¢ to $62.88 and Fortescue Metals was 6¢ higher at $4.51.
Of the banks, Westpac was up 48¢ at $32.41, National Australia Bank gained 26¢ to $33.44, ANZ firmed 23¢ to $30.17 and Commonwealth Bank jumped 27¢ to $73.90.
Elders rose 1¢ to 10.5¢ after the rural services provider announced that it had nearly completed refinancing the group and would slash about 10 per cent of its staff.
Drillsearch shares were 1¢ lower at $1.37 even as it signed a $120 million joint venture deal giving Santos a 60 per cent stake in the Western Cooper Wet Gas project.
Tokyo stocks rose 1.54 per cent, extending the previous day’s rally on positive growth data and the success of Japan’s bid to host the 2020 Olympics.
Late on Tuesday, the Australian dollar was trading at US92.50¢, up from 91.98¢ on Monday. It peaked at US92.90¢, its highest level since July 26.
Official data released on Tuesday showed that China’s industrial production rose 10.4 per cent in the 12 months to August, the fastest increase since March 2012.
The spot price of gold in Sydney finished at $US1378.48, down $US8.42 on Monday.
National turnoverwas 1.65 billion securities worth $4.16 billion.
Frequently Asked Questions about this Article…
Australian shares have climbed toward their yearly highs after a decisive federal election result boosted investor confidence, encouraging Chinese economic data, optimism about major construction work in Japan ahead of the 2020 Olympics, and easing geopolitical anxiety over Syria when Russia suggested international control of Syrian chemical weapons.
Official data showed China's industrial production rose 10.4% year‑on‑year to August, the fastest increase since March 2012, which lifted demand expectations and helped boost Australian resources stocks such as BHP Billiton, Rio Tinto and Fortescue Metals.
BHP Billiton rose 26¢ to $35.90, Rio Tinto added 93¢ to $62.88, and Fortescue Metals was 6¢ higher at $4.51, reflecting stronger demand sentiment tied to Chinese data and global growth optimism.
Big bank stocks led gains with Westpac up 48¢ to $32.41, National Australia Bank up 26¢ to $33.44, ANZ up 23¢ to $30.17 and Commonwealth Bank up 27¢ to $73.90—moves driven by improved market sentiment after the election and firmer global economic signals.
Elders rose 1¢ to 10.5¢ after announcing it had nearly completed refinancing the group and planned to slash about 10% of its staff, news investors viewed as progress on restructuring.
Drillsearch signed a $120 million joint‑venture deal giving Santos a 60% stake in the Western Cooper Wet Gas project; despite the deal, Drillsearch shares were 1¢ lower at $1.37 on the day.
The Australian dollar hit a six‑week high, trading around US92.50¢ and peaking at US92.90¢, while the spot price of gold in Sydney finished at US$1,378.48, down US$8.42 on the previous day.
National turnover was 1.65 billion securities worth $4.16 billion, and Tokyo stocks rose 1.54%—extending a rally supported by positive growth data and Japan's successful bid to host the 2020 Olympics.
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