The Australian share market has closed at a fresh eight-month high, buoyed by resource stocks and investors punting on China undertaking new moves to boost its economy.
At 1615 AEST on Thursday, the benchmark S&P/ASX200 index was up 14 points, or 0.32 per cent, at 4,362.7 points, while the broader All Ordinaries index had gained 14.1 points, or 0.32 per cent, at 4,441.3 points.
On the ASX 24, the June share price index futures contract was six points higher at 4,367 points, with 27,239 contracts traded, according to preliminary calculations.
In early trade on Thursday, the Chinese share market lifted on hopes that China’s central bank may move to boost bank liquidity, amid the slowing domestic economy.
IG Markets market strategist Stan Shamu said the Australian market had been looking at negative leads from United States and European markets overnight.
“But we did get some whispers in the morning saying China might be looking at further easing,” Mr Shamu said.
“It does look like it is something they will look at doing, but it hasn’t quite happened.”
Mr Shamu said most of the market gains on Thursday had come from the resources sector.
The release of positive production reports from global miners BHP Billiton and Rio Tinto this week resulted in upgrades from brokers.
“It generally seems there has been improved sentiment in the resources sector,” Mr Shamu said.
Mr Shamu said focus would soon be back on economically troubled Spain’s 10-year bond auction later on Thursday night.
“Hopefully, it goes fairly well so that we can maintain this positive run that we had today,” he said.
On the local bourse, BHP Billiton was up 40 cents at $35.50 and Rio Tinto was 10 cents richer at $66.60.
Fortescue Metals Group was nine cents higher at $6.02 despite third quarter iron ore production falling below guidance as a result of cyclones in Western Australia.
Oil and gas producer Woodside Petroleum climbed 49 cents to $35.04 as it maintained its full year production target and increased first quarter revenue.
Santos firmed four cents to $14.04 as higher oil and gas production and stronger prices boosted first quarter sales revenue by 50 per cent.
Among the major banks, Commonwealth Bank was flat at $50.78 after it announced its growth plans.
Westpac dipped four cents to $22.02, ANZ found four cents at $23.30 and National Australia Bank added six cents to 25.24.
Among other stocks, ports and rail operator Asciano rose four cents to $4.79 as it reached agreement with the Maritime Union of Australia on a new enterprise agreement for container terminal workers across Australia.
Telco Telstra was up three cents at $3.39 after it said it expected to generate up to $3 billion in extra cash over the next three years as a result of its agreement with the federal government for the rollout of the national broadband network.
Health, beauty and pharmacy products retailer Australian Pharmaceutical Industries improved three cents to 37 cents as it said it planned to continue expanding its chain of Priceline stores despite the gloomy outlook for the retail sector.
There were 2.6 billion shares traded for $5.52 billion with 520 up, 460 down and 430.
On Wall Street on Wednesday, the Dow Jones Industrial Average shed 82.79 points, or 0.63 per cent, to 13,032.75 points.
