The Australian share market has recovered to finish in positive territory, pushed up by positive economic data out of China.
The local bourse opened about 20 points higher, drifted back into negative territory and then rose after lunch.
The benchmark S&P/ASX200 index finished up 31.6 points, or 0.78 per cent, at 4,071.8, while the broader All Ordinaries index was 28.8 points, or 0.7 per cent, better at 4,153.6.
On the ASX 24, the December share price index futures contract was 43 points higher at 4,089 points, with 38,357 contracts traded.
China’s leading economic indicators were up 0.6 per cent in July, sending its market more than two per cent higher.
The leading indicators showed China was withstanding Europe’s debt crisis and faltering growth in the US, IG Markets strategist Chris Weston said.
That followed the International Monetary Fund (IMF) lowering its growth forecasts for the global economy to four per cent for 2011 and 2012, and warning of a return to recession if Western leaders fail to get their economies back on track.
“It’s still very positive, China is still that one beacon of global economic strength in a world which seems to be deteriorating before our eyes at the moment,” Mr Weston said.
Attention would turn to the two-day meeting of the US Federal Reserve’s Federal Open Market Committee (FOMC) meeting and subsequent interest rate decision.
Locally, healthcare, energy and consumer discretionary sectors – such as retail – were the best performers.
The best performer among the top 50 was Origin Energy, up 60 cents, or 4.67 per cent, to close at $13.45.
Next best was healthcare stock CSL, lifting $1.19, or 4.38 per cent, at $28.39.
Retail stocks fared well, after David Jones met its financial guidance in delivering a 1.5 per cent fall in annual profit.
It also maintained its forecasts for its first half profit despite ongoing weakness in consumer spending.
David Jones climbed six cents, or 2.22 per cent, at $2.76.
Harvey Norman added seven cents, or 3.5 per cent, to $2.05, Myer was up four cents, or 1.9 per cent, at $2.11, and JB Hi-Fi was 12 cents higher, up 0.81 per cent, at $15.02.
The big banks and miners were mixed.
Commonwealth Bank was the worst performer, down 42 cents, or 0.95 per cent, at $43.95, while the other three big banks clawed back earlier losses to finish positively, with National Australia Bank finding 19 cents to $22.19, Westpac up 8 cents to $19.31 and ANZ adding seven cents to $19.39.
The world’s biggest miner, BHP Billiton was up 33 cents at $37.13 on a day it revealed chief executive Marius Kloppers’ annual pay grew by 8.5 per cent in the last financial year, to $US11.6 million ($A11.37 million).
Rio Tinto was 69 cents stronger at $69.59, Oz Minerals 12 cents worse at $10.54 and Iluka Resources 70 cents, or 4.61 per cent weaker at $14.50.
Preliminary national turnover was 1.9 billion shares changing hands for $5.04 billion, with 473 stocks up, 537 down and 356 unchanged.
