The Australian stock market has bounced back from last week’s losses as news of further economic stimulus in China helps lift commodity prices.
CMC Markets chief market strategist Michael McCarthy said the market was around half a per cent higher, with resources stocks leading the charge.
He said the market had been boosted by an interest rate cut in China, which is expected to support the country’s property market and help increase demand for iron ore and other commodities.
“That’s seen as very supportive for commodity prices generally and that’s one of the key reasons we are seeing support for the materials and energy sectors sectors this morning,” he said.
Mining giant BHP Billiton gained 60 cents, or almost two per cent, to $31.92 in early trade, while Rio Tinto was 62 cents higher to $59.06 and Fortescue Metals lifted 10 cents, or more than four per cent, to $2.60.
Oil and gas giant Woodside was 55 cents higher to $34.55, while Santos picked up nine cents to $8.68.
Among the major banks, the Commonwealth lifted 31 cents to $82.95, while ANZ gained three cents to $32.36 and Westpac advanced 11 cents to $34.17.
National Australia Bank shares remain in a trading halt as it continued its $5.5 billion capital raising.
The S&P/ASX 200 lost more than three per cent last week as a slide in bank stocks weighed on the market.
KEY FACTS
* At 1030 AEST on Monday, the benchmark S&P/ASX200 index was up 34.3 points, or 0.61 per cent, at 5,668.9.
* The broader All Ordinaries index was up 34.8 points, or 0.62 per cent, at 5,670.2.
* The June share price index futures contract was 32 points higher at 5,634 with 10,675 contracts traded.
* National turnover was 359 million securities worth $712 million.
