The Australian sharemarket has rallied to close at a five and a half year high on renewed hopes of peace in Ukraine and the promise of strong Chinese growth.
Russian president Vladimir Putin has said the use of force in Crimea was “a last resort”, a possible sign the situation was easing.
Meanwhile, China’s markets rallied after the government said it is targeting growth of about 7.5 per cent in 2014.
In addition the latest local quarterly Australian economic growth figures were better than expected, taking growth in 2013 to 2.8 per cent.
IG Market analyst Evan Lucas said the local market had rallied to a five and a half year closing high on the back of the positive news.
“All of that is contributing to why we have moved the way we have,” Mr Lucas said.
“Momentum has come in the second half of the day.”
Global markets reacted positively as the Ukraniun situation began to simmer down, he said.
“It actually hurt Russia more than anything on a financial basis, with their markets under pressure, their debt market under a lot of pressure and the rouble falling through the floor,” Mr Lucas said.
“It’s pushed them away from the precipice of doing something in Crimea.”
The banks were all higher, with Westpac up 58 cents at $34.23, ANZ up 34 cents at $32.52, Commonwealth up 59 cents at $75.52 and NAB 31 cents higher at $35.04.
The big miners were mixed, with BHP Billiton gaining 1.2 per cent to $37.80, Rio Tinto losing $1.02 to $64.81 and Fortescue Metals Group shedding four cents to $5.29.
KEY FACTS
* At 1615 AEDT on Wednesday, the benchmark S&P/ASX200 index was up 46.0 points, or 0.85 per cent, at 5,446.2 points.
* The broader All Ordinaries index was up 45.6 points, or 0.84 per cent, at 5,457.3 points.
* The March share price index futures contract was up 48 points at 5,453 points, with 30,362 contracts traded.
* National turnover was 2.8 billion securities worth $6.2 billion.
