The Australian sharemarket closed slightly higher, in a major turnaround from the day before, as cautious investors were encouraged by better Chinese manufacturing data.
At the close on Tuesday, the benchmark S&P/ASX200 index was up 4.3 points, or 0.1%, at 4,133.2, while the broader All Ordinaries index was up two points, or 0.05%, at 4,161.2.
On the ASX 24, the September share price index futures contract was three points lower at 4,087, with 25,084 contracts traded.
The market on Monday had closed 1.7% lower amid renewed fears about the European debt crisis and the end of Australia’s mining boom.
Lonsec analyst Michael Heffernan said resources stocks pulled the local indices out of the red on Tuesday after the release of data showing China’s manufacturing downturn had bottomed.
“That was a spur for the resources sector,” Mr Heffernan said.
“People are keeping their hands in their pockets and we’re still subject to information out of Europe.”
While 14 of the top 20 Australian companies were in positive territory, anaemic turnover continued to be a feature of the local market as high-yielding stocks remained in favour.
BHP Billiton gained 38 cents to $30.93, while Rio Tinto was 24 cents lower at $51.76.
Fortescue Metals Group suffered steep falls in morning trade before regaining ground to close one cent lower at $4.04.
Beleaguered Brazil-focused miner Mirabela Nickel gained one cent to 25 cents after announcing it remains on track to deliver on its production forecast but will shed several hundred jobs.
Meanwhile, Oil Search says it is close to deciding on partners for its natural gas exploration assets in resource-rich Papua New Guinea, and was two cents higher at $6.60.
In the retail sector, shares in troubled surfwear brand Billabong surged 19.5 per cent to $1.31 after it received a second, but substantially lower, takeover offer from US private equity firm TPG valuing the firm at $695 million.
Shares in garage doors, windows and building products maker Alesco were down two cents to $2.01 as it announced a $13.9 million loss for its 2012 financial year.
The company is subject to a $210 million takeover bid from paintmaker DuluxGroup, which finished three cents weaker at $2.97.
National turnover was 1.59 billion securities worth $3.19 billion, with 342 stocks up, 557 down and 370 unchanged.
