Australian Stocks Ease on Faster China Expansion, Inflation

Marcus Jacob
15 Apr, 2011
New York City

Australian stocks declined as commodities fell after China reported faster than expected economic expansion in the first quarter. March inflation increased at the fastest pace in nearly three years. Miners and energy stocks declined.

[R]5:00 PM Sydney – Australian stocks declined as commodities fell after China reported faster than expected economic expansion in the first quarter. March inflation increased at the fastest pace in nearly three years. Miners and energy stocks declined.[/R]

Stocks in Sydney trading declined after China reported sharply higher than expected inflation and a robust quarterly economic growth. G20 finance ministers are scheduled are meet in Washington today as world economy slides after two years of global economic stimulus.

The ASX 200 index declined 32.10 to 4,852.10 and the All Ordinaries Index fell 33.10 or 0.7% to 4,939.30.

The Australian dollar edged lower to US$1.051 and crude oil closed up 27 cents to US$108.38.

March inflation in China rose to 5.4% after increasing at 4.9% in February and the highest pace since July 2008. The economic expansion in the first quarter was 9.7% compared to 9.8% in the last quarter of 2010.

Wholesale inflation increased at 7.3% in March, up 0.6% from February and industrial production increase 14.4% in the first quarter.

Stock Movers

Singapore Telecom increased 2 cents to $2.33 and Amcom Telecommunications added 1.5 cents to 38.5 cents.

Miners closed lower after commodities prices declined in Asian trading. BHP Billiton declined 48 cents to $47.53 and Rio Tinto dropped 97 cents to $84.15.

Boral increased 2 cents to $5.07 after the company acquires a company for $173 million exposure to Queensland mining.

Paladin Energy increased 9 cents to $3.64 after the company said its uranium production in the current financial year will be near the low end of the previous estimate on rainfalls in Namibia and fuel shortage in Malawi.

Banks closed lower. Commonwealth Bank declined 45 cents to $52.22 and National Australia Bank dropped 28 cents to $26.19 and Westpac dropped 12 cents to $24.80.