Australian Unemployment at 5.2%; Natives Win Land Rights

Chandrasekhar Atreya
10 Dec, 2010
New York City

Sydney indexes edged higher after China reported a surge in exports and Australia

[R]6:00 PM Sydney, Australia – Stocks in Sydney edged higher after China reported a surge in exports and Australia’s unemployment in November was 5.2%. Federal judge awards native title rights of 1.7 million hectares of land in northwest Queensland to Waanyi Tribe. Rio promises partner Ivanhoe $3.7 billion to take over management of Mongolian project.[/R]

Stocks in Sydney closed higher as commodities prices stayed elevated and China reported better than expected trade data. China is scheduled to release inflation data this weekend. China’s November exports surged 35%.

The ASX 200 Index added 0.10% or 4.60 to close at 4,745.90. The index gained 1.1% for the week.

The Australian dollar closed at 98.57 U.S. cents in Sydney today.

Unemployment rate in Australia was a seasonally adjusted 5.2% in November, down from the 5.4% recorded in October, data from Australian Bureau of Statistics showed on Thursday.

While total employment for the month rose 54,600 to 11.416 million, full-time employment rose by 55,100 to 8.033 million and part-time employment fell by 400 to 3.383 million.

The government of East Timor today said Woodside Petroleum met its request to submit different concept studies for the development of the Greater Sunrise gas field, including an export facility. The earlier proposal to process gas on a floating liquefied natural gas vessel was rejected by East Timor government’s regulator.

The Australian Transport Safety Bureau reported that a global investigation uncovered three more faulty Rolls-Royce engines on A380 super jumbos, with one of them on a brand new jet that is yet to be delivered to Qantas.

This report was released a few days after Qantas lodged its multi-million dollar damages claim against Rolls-Royce over the mid-air emergency near Singapore on November 4.

The competition regulator of Australia approved Origin Energy and AGL’s application for picking up a number of assets from the A$8 billion privatization deal of electricity in New South Wales.

The regulator also raised concerns that the proposed acquisition of P&N Breweries of Australia by Asahi Breweries could hurt competition in the carbonated drinks segment of the market.

The Australian Securities Exchange disciplinary tribunal fined Merrill Lynch A$258,500, in two separate matters.

Rio Tinto Group said it will take over the management of Mongolian Oyu Tolgoi project, which has the largest copper and gold deposits in the world, after investing as much as $3.7 billion in partner Ivanhoe Mines Ltd.

Rio agreed to lend Ivanhoe $1.8 billion and will exercise share warrants, participate in Ivanhoe’s planned $1.2 billion rights offer and buy outstanding shares, thus increasing its stake in the Vancouver-based mine operator to 49% from the current 35%, Rio said in a statement.

Federal Court judge John Dowsett on Thursday granted native title to the Waanyi Tribe for more than 1.7 million hectares in northwest Queensland after a prolonged battle of 11 years.

The title includes pastoral lease land, camping and water reserves as well as the MMG Century Zinc mine, the largest in Australia.

Stock Movers

Australian banks closed higher following the gains in banks and financial stocks in the U.S.

ANZ Bank added 18 cents to A$23.83, while Commonwealth Bank gained 35 cents to close at A$50.59. NAB added 22 cents to close at A$24.22 and Westpac Bank gained 28 cents to close at A$22.57.

Retailers closed mixed.

Woolworths Ltd gained 22 cents to A$26.34 and Wesfarmers, the owner of Coles, shed 36 cents to close at A$31.64.

Resources linked stocks closed weak.

Rio Tinto lost 58 cents and closed at A$87.36. BHP Billiton closed unchanged at A$45.44 today. Gondwana Resources added 1 cent to close at A$0.02.