US sentiment overrules China negativity
The benchmark S&P/ASX200 Index rose 23.5 points, or 0.5 per cent, to 5146.9, closing just below the day's high. The broader All Ordinaries Index gained 22.7 points, or 0.4 per cent, to 5160.2.
The S&P/ASX 200 is now at its highest since June 2008.
In data released over the weekend, Chinese inflation rose to a 10-month high and industrial production and retail sales growth fell.
After an initial slump, investors decided record highs on Wall Street last week outweighed China's negative numbers.
The financial sector did most of the heavy lifting, led by Commonwealth Bank, which pushed through $70 a share. The resource sector continued to struggle as it has for much of 2013 as mining companies adapt to an age of small profits and tighter capital controls.
RBS Morgans senior trader Luke McElwaine said investors were searching the resources sector for better returns.
"There is an insatiable appetite for banks globally. The yield theme is probably the strongest," he said.
NAB led the charge on Monday, jumping 1.7 per cent to $31.64, while Commonwealth Bank inched up to a record high of $70.13. ANZ finished slightly higher at $29.20 and Westpac, which is near record highs, remained flat at $31.25.
The data from China hit miners. Rio Tinto slipped 2 per cent to $63.10, while BHP lost 0.7 per cent to $35.82. Fortescue Metals dropped 1.1 per cent to $4.37.
Mr McElwaine said the market was still trying to find a new home above 5000 and he did not expect it to run off in the near-term, but with a weakening Australian dollar and a federal election this year, the ASX could potentially push higher.
"I think investors are looking through the earnings, which is a good sign, because it tells you sentiment is getting better," he said.
Woolworths hit a record high, adding 1 per cent to $35.71, while rival Wesfarmers gained around half a per cent to $42.85.
CSR, which will cut 150 jobs because of the Australian dollar and weak construction market, rose 2.9 per cent to $2.16.
Leighton Holdings finished 2 per cent higher at $22.48 after its subsidiary Thiess was awarded a $212 million contract for work on Chevron's Gorgon project in Western Australia.
Frequently Asked Questions about this Article…
The S&P/ASX200 rose 23.5 points (0.5%) to 5,146.9 and the All Ordinaries gained 22.7 points (0.4%) to 5,160.2, pushing the ASX to its highest level since June 2008. Banks led the rally and helped investors look past weaker Chinese data, while record highs on Wall Street also supported market sentiment.
The financial sector did most of the heavy lifting. NAB jumped 1.7% to $31.64, Commonwealth Bank pushed through $70 to a record $70.13, ANZ finished slightly higher at $29.20, and Westpac remained flat near record highs at $31.25.
Chinese inflation rose to a 10‑month high while industrial production and retail sales growth fell. That combination hit miners: Rio Tinto slipped 2% to $63.10, BHP lost 0.7% to $35.82, and Fortescue Metals dropped 1.1% to $4.37, reflecting sensitivity of resources to China data.
RBS Morgans senior trader Luke McElwaine said there is an 'insatiable appetite for banks globally' and that the yield theme is probably the strongest. He noted investors are searching the resources sector for better returns and that looking through earnings suggests sentiment is improving.
The article notes the market was trying to find a new home above 5,000 and that a weakening Australian dollar and an upcoming federal election this year could potentially push the ASX higher, although a near‑term runaway rally was not expected.
Woolworths hit a record high, adding 1% to $35.71, and rival Wesfarmers gained about 0.5% to $42.85. CSR rose 2.9% to $2.16 after announcing 150 job cuts tied to the Australian dollar and a weak construction market. Leighton Holdings finished 2% higher at $22.48 after its subsidiary Thiess won a $212 million contract on Chevron's Gorgon project.
The session showed a rotation into financials, driven by yield appeal in bank stocks, while the resources sector struggled on China weakness. For everyday investors, the key takeaway is that broad market moves can be led by shifts in investor sentiment and macro data rather than company earnings alone.
The S&P/ASX200 rose 23.5 points, or 0.5%, to close at 5,146.9, and the broader All Ordinaries Index gained 22.7 points, or 0.4%, to finish at 5,160.2. The S&P/ASX200 was at its highest level since June 2008.
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