The share market has closed higher after the central banks of India and Turkey lifted interest rates to counter a sell-off in their currencies and ease investors’ concerns about the stability of emerging markets.
Global equities trading has been weighed down recently by concerns about a slowdown in emerging markets such as Turkey, Argentina, India, Indonesia and Thailand.
“The Turkish central bank’s decision to lift their interest rates has certainly been a good lift for risk assets, and that happened just before the open here,” OptionsXpress market analyst Ben Le Brun said on Wednesday.
“I think to a large degree we’ve got that to thank. It’s been a nice bounce back.”
Mr Le Brun said attention would now turn to the outcome of the two day policy meeting of the US Federal Reserve’s Federal Open Market Committee (FOMC).
The FOMC will decide whether or not the central bank continues to taper its stimulus measures for the US economy.
Observers are expecting further tapering but if there is a smaller cut than expected, or no cut at all, the reaction in share markets is likely to be positive.
Locally, resources stocks rose, with BHP Billiton gaining 56 cents to $36.87, Rio Tinto rising $1.49 to $65.80, and iron ore miner Fortescue Metals adding 15 cents to $5.30.
Oil and gas explorer Drillsearch Energy jumped nine cents, or 6.3 per cent, to $1.52 after increasing its 2014 production guidance by around a million barrels.
Atlas Iron added 9.5 cents, or 9.95 per cent, to $1.05 after the company also lifted its full year production guidance.
Engineering firm Forge Group dumped eight cents, or 8.9 per cent, to 82 cents after after it flagged an annual loss of up to $25 million.
Among the major banks, Commonwealth Bank lifted 79 cents to $74.92, National Australia Bank found 27 cents to $33.60, ANZ picked up 23 cents to $30.37,and Westpac improved 42 cents to $31.20.
KEY FACTS
* At the close on Wednesday, the benchmark S&P/ASX200 index was up 53.9 points, or 1.04 per cent, at 5,229.0 points.
* The broader All Ordinaries index was up 52.6 points, or 1.01 per cent, at 5,240.6 points.
* The March share price index futures contract was 43 points higher at 5,176 points, with 22,762 contracts traded.
* National turnover was 1.54 billion securities worth $4.05 billion.
