Australian stocks are continuing to rise as the Obama administration looks to pursue a diplomatic solution to the Syrian conflict.
The local market strengthened in morning trade after an overnight rally on international markets, buoyed by the likelihood of a non-violent outcome to the Syrian situation, Australian Stock Report senior equities analyst Benny Sada said.
“There is less chance that we are going to get conflict in Syria and that’s translated in our share market today,” he said.
Traders’ nerves had been eased by President Obama’s comments he was considering a solution where Syria would surrender all its chemical weapons, rather than taking military action, Mr Sada said.
More positive economic data out of China on Tuesday was the other key factor driving Australian stocks higher, he added.
The figures showed China’s industrial production rose 10.4 per cent in the 12 months to August, while retail sales jumped 13.4 per cent.
“It is seemingly confirming that the (Chinese) economy is beginning to turn higher again,” Mr Sada said.
If the market maintains its current level during afternoon trading, it will close at its highest point for 2013.
Explosives and chemical maker Orica’s shares were up 16.5 cents at $20.84 after it said it would sell surplus land next to a former plant in Sydney where residents had called for mercury testing.
Property group Charter Hall’s shares had dropped one cent to $3.63 after it announced plans to buy two Westfield shopping centres in Perth’s northwest for $255 million.
Resources stocks were firmer, with global miner BHP Billiton up 35 cents at $36.25 and Rio Tinto up $1.08 at $63.96.
Among the major banks, National Australia Bank had added 20 cents to $33.64, ANZ had gained 15 cents to $30.32 and Commonwealth Bank was five cents higher at $73.95.
But Westpac had fallen eight cents to $32.33.
Telstra was up one cent at $4.85.
KEY FACTS
* At 1231 AEST on Wednesday, the benchmark S&P/ASX200 index was up 15.4 points, or 0.3 per cent, at 5,216.6 points.
* The broader All Ordinaries index was up 13.9 points, or 0.27 per cent, at 5,212.8 points.
* The September share price index futures contract 13 points higher at 5,219 points, with 12,880 contracts traded.
* National turnover was 1.002 billion securities worth $2.1 billion.
