The Australian share market rose by more than one per cent as renewed optimism about China’s economy prompted investors to pile into resources stocks.
IG Markets institutional dealer Chris Weston said sentiment towards China had changed since the release of encouraging economic data late last week.
“Materials are driving the gains today,” he said.
Data out on Friday showed China’s industrial growth for July reached a five-month high, easing fears the world’s second largest economy was heading towards a slowdown.
China’s benchmark share market index reached its highest level in almost two months on Monday.
Locally, mining giant BHP Billiton gained 87 cents, or 2.4 per cent, to $36.81, Rio Tinto added $1.58, or 2.6 per cent, to $61.83 and Fortescue Metals was 30 cents higher, up 7.5 per cent, at $4.31.
Australia’s biggest gold miner Newcrest gained 91 cents, or 7.9 per cent, at $12.39 as it reported a loss of $5.78 billion for the 2012/13 financial year, as it had already forecast.
Retailer JB Hi-Fi reported a net profit of $116.4 million in the 2012/13 financial year, an 11 per cent rise on the previous year, and its shares gained 60 cents, or 3.2 per cent, at $19.12.
Other discretionary retail stocks took comfort from the result.
David Jones gained 13 cents to $2.74 and Harvey Norman added four cents to $2.84, but Myer dropped one cent to $2.58.
The big banks also rose, with ANZ up 31 cents at $29.54, Commonwealth Bank up 97 cents at $73.82, Westpac up 31 cents at $31.08 and NAB was 12 cents higher at $30.69.
KEY FACTS
* The benchmark S&P/ASX200 index added 53.5 points, or 1.06 per cent, to 5,108.7.
* The broader All Ordinaries index gained 55.3 points, or 1.1 per cent, to 5,094.1.
* The September share price index futures contract was 56 points higher at 5,060, with 26,485 contracts traded.
* The spot price of gold in Sydney finished at $US1,330.60, up $US22.25 from $US1,308.35 on Friday
* National turnover was 1.6 billion securities worth $4.1 billion.
