SYDNEY, Feb 6: Australian shares rallied 0.8 percent on Wednesday after Wall Street rebounded on solid U.S. Earnings and data showed the global economy continuing to improve.
Financials led the gains with Westpac banking Corp jumping 0.8 percent.
‘This week has shown us that while there will inevitably be bumps in the road the natural tendency of the market is to push higher in this climate, and investors are positioning themselves for further upside moves while global economic data provides cause for optimism,’ said Tim Waterer, senior trader at CMC Markets.
The S&P/ASX 200 index finished the day 38.3 points higher to 4,921. The benchmark index fell 0.5 percent on Tuesday.
Global iron ore miners were stronger, with BHP Billition Ltd and rival Rio Tinto Ltd posting gains of 0.9 percent and 1.1 percent respectively.
Gold miners Silver Lake Resources plumbed 2.5 percent and Lynas Corp tumbled 3.2 percent.
Food retailers rallied, Woolworths Ltd surged 2.7 percent while Wesfarmers Ltd jumped 1 percent.
Defensives were mostly firmer as blood products maker CSL Ltd surged 2.1 percent and utility Origin Energy edged up 0.3 percent. But Australia’s no.1 telecommunications provider Telstra Ltd bucked the trend, losing 0.9 percent.
‘[A poor result in] Australian unemployment data out tomorrow will increase the likelihood of a March rate cut as the RBA holds its dovish view of the Australian economy,’ said Lucas.
Official data showed Australian retail turnover for December and the fourth quarter fell 0.2 percent. The weaker-than-expected retail sales data added to the case for further lowering of interest rates this year.
U.S. Stocks climbed on Tuesday, recovering a day after the market’s biggest sell-off since November, as stronger-than-expected earnings brightened the profit picture.
New Zealand’s benchmark NZX 50 index is closed for the Waitangi Day public holiday.
(AGENCIES)
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