Australia’s share market has closed at the highest level since mid-2008 as China regains its economic growth pace.
A resolution to the US debt crisis also boosted gold prices and the Australian dollar, which helped gold miners but not the resource giants which have their earnings nominated in US greenbacks.
China, the world’s second biggest economy, grew by 7.8 per cent in the year to September, helping the overall Australian share market close at its highest level since June 2008, Bell Direct equities analyst Julia Lee said.
“The US shutdown’s now in the past so the market has some sense of normality to it,” she said.
“So today, we were very much focused in on China and the numbers coming through there.”
A weaker US dollar helped gold miner Newcrest, which gained 54 cents, or 5.33 per cent, to close at $10.68.
But the big miners, which express their earnings in greenback terms, didn’t fare as well with BHP Billiton losing five cents to $35.75 while Rio Tinto shed 26 cents to $63.45.
Meanwhile, insurer QBE shed 19 cents to $14.59 while healthcare group ResMed lost six cents to $5.79.
“That rising Aussie dollar is a headwind for earnings and for cash flow,” Ms Lee said.
Other energy players were mixed, with Fortescue Metals Group adding six cents to $5.30, Woodside Petroleum gaining 16 cents to $38.16, but Santos dropping 14 cents to $14.75 after warning full year production will be at the low end of guidance.
The big banks all made gains, with ANZ adding 17 cents to $31.86, Commonwealth Bank finding 74 cents to $74.17, NAB adding 34 cents to $35.98 and Westpac rising by 38 cents to $34.
“That’s probably going to continue … because next month we do see ANZ, NAB and Westpac paying dividends,” Ms Lee said.
Qantas lost five cents to $1.43 after the airline told shareholders average airfares per passenger were set to decline amid high fuel costs and weak demand.
KEY FACTS
* At 1615 AEDT on Friday, the benchmark S&P/ASX200 index was 38.4 points, or 0.73 per cent, higher at 5,321.5 points, marking the highest close since June 2008.
* The broader All Ordinaries index was up 39.1 points, or 0.74 per cent, at 5,321.
* The December share price index futures contract was 42 points higher at 5,317, with 18,207 contracts traded.
* National turnover was 1.8 billion securities worth $3.6 billion.
