The Australian stock market has closed one per cent higher due to stronger than expected Chinese manufacturing data.
Official manufacturing numbers number released over the weekend and figures from HSBC on Monday put investors in a positive frame of mind, despite the threat of a military strike in Syria, CMC Markets strategist Michael McCarthy said.
“The data’s certainly helping and the potential for a strike in Syria is receding with Obama’s decision to refer any action to Congress,” Mr McCarthy said.
HSBC’s purchasing managers’ index rebounded to 50.1 in August, indicating the industry’s first month of expansion since April.
The market was also assisted by strong building approvals data and figures showing inflation remains contained.
“Those things have come together today against the backdrop of an overall tick for corporate Australia from reporting season,” Mr McCarthy said.
More important economic data is due to be released later this week, with Australian gross domestic product figures coming on Wednesday.
Almost all sectors of the market rose on Monday.
In financials, National Australia Bank gained 40 cents to $32.85, ANZ added 31 cents to $30.00, Westpac climbed 43 cents to $31.82 and Commonwealth Bank was 84 cents higher at $73.68.
But AMP shares dropped five cents to $4.69 after announcing it will establish a joint venture funds management company in China.
In the resources sector, BHP Billiton was 13 cents lower at $35.62 after paying out its final dividend for the 2012/13 financial year.
Rio Tinto gained 92 cents to $59.22 and iron ore miner Fortescue Metals was flat at $4.33, also after paying its dividend.
KEY FACTS
* At the close on Monday, the benchmark S&P/ASX200 index was up 53.3 points, or 1.04 per cent, at 5,188.3.
* The broader All Ordinaries index was up 52.7 points, or 1.03 per cent, at 5,178.
* The September share price index futures contract was 66 points higher at 5,184, with 28,793 contracts traded..
* National turnover was 1.6 billion securities worth $4.4 billion.