The Australian share market closed higher in response to positive production numbers from BHP Billiton and after global markets rallied in response to a successful Spanish bond auction.
The benchmark S&P/ASX200 index rose 59.9 points, or 1.4 per cent, to 4,348.7 points, while the broader All Ordinaries index gained 58.4 points, or 1.34 per cent, to 4,427.2 points.
On the ASX 24, the June share price index futures contract was 70 points higher at 4,361 points, with 31,085 contracts traded.
European stock markets rallied after a successful Spanish bond auction eased concerns over the euro zone debt crisis.
The debt auction was a curtain-raiser to a crucial auction of 10-year bonds later this week, seen as a key indicator of market confidence in the troubled euro zone nation.
CMC Markets chief market analyst Ric Spooner said the Australian market had responded positively to the auction of short-term Spanish bonds, but the short-term bonds were less risky than the long-term bonds up for sale later this week.
“But so far, so good, and we have responded to that,” Mr Spooner said.
“A generally in line and reasonable result from BHP Billiton gave us some support today as well, all against the background of a presumption of an interest rate cut by the Reserve Bank (of Australia) next month.”
In the resources sector, global miner BHP Billiton was 95 cents higher at $35.10 after its latest production figures met expectations.
But the miner warned that the effect of strikes at its Queensland coal mines may be substantial.
Rival miner Rio Tinto was $1.80 stronger at $66.50.
Elsewhere in the resources sector, oil and gas producer Petsec Energy was steady at 18.5 cents as it booked a 62 per cent plunge in March quarter revenue after production and US gas prices fell.
Shopping centre owner Westfield Group was 30 cents richer at $9.17 after it said it would sell eight shopping centres in the US for $US1.15 billion ($A1.11 billion) so it could reduce debt and invest in developments like the new World Trade Centre in New York.
The Bank of Queensland was 18 cents higher at $7.14 after saying that loan arrears were stabilising after a big rise in the costs of bad loans caused a $90.6 million first half loss.
Among the big four banks, National Australia Bank was up 33 cents at $25.18, Westpac advanced eight cents to $22.06, ANZ picked up 26 cents at $23.26 and Commonwealth Bank increased 68 cents to $50.78.
Fish farmer Clean Seas Tuna was 0.2 cents lower at 4.6 cents after the company said a breakout of enteritis among Yellowtail Kingfish was causing financial concerns.
The price of gold in Sydney closed at $US1,651.84 per fine ounce, up $US5.12 from $US1,646.72 on Tuesday.
There were 1.9 billion shares traded for $4.52 billion, with 641 up, 345 down and 426 unchanged.
On Wall Street on Tuesday, the Dow Jones Industrial Average was up 194.13 points, or 1.50 per cent, at 13,115.54 points.
AAP t
