Australian Index Rally 2.6%; Asian Markets Up

Marcus Jacob
10 Aug, 2011
New York City

Australian stocks soared following a strong rebound in Asian markets tracking gains in overnight trading in New York. The broad rally lifted resources linked stocks, banks and retailers. China trade surplus rose to a record high in 30 months.

[R]4:30 PM Sydney – Australian stocks soared following a strong rebound in Asian markets tracking gains in overnight trading in New York. The broad rally lifted resources linked stocks, banks and retailers. China trade surplus rose to a record high in 30 months.[/R]

Australian stocks rebounded as markets in Asia returned to higher ground a week of chaotic trading. The index advanced on a broad selling.

China reported trade surplus increased to US$31.5 billion, highest since January 2009 and jumped from US$22.3 billion in June.

Exports soared 20.4% after rising 17.9% in June. Imports gained 22.9% after expanding at 19.3% in June.

The ASX 200 index added 106.50 or 2.6% to 4,141.30 and All Ordinaries index gained 2.6% or 110.6 to 4,207.30. The benchmark ASX 200 index is down 19% from its peak in April and the index is trading near a 2-year low.

The Australian dollar decreased 0.9% to US$1.013 after global economic worries dragged the currency lower.

In, trading, turnover declined to 3.05 billion shares changed hands worth $8.3 billion and 1,053 shares gained, 193 declined and 234 closed unchanged.

Stock Movers

In New York trading, Gold traded above platinum for the first time since December 2008. Platinum added 1% to $1,740.40 an ounce and palladium futures for September delivery increased 1% to $735.45.

Gold continued to attract speculators and safety seekers after a rating agency downgraded the U.S. debt. Gold has gained 23% in the year so far and now trades above platinum for the first time since December 2008.

BHP Billiton Ltd added $1.35 to $38.40 and Rio Tinto increased $2.61 to $72.35. Newcrest Mining Ltd increased 53 cents to $39.25.

Iluka Resources added $1.78 to $16.08.

Energy futures edged lower by 75 cents to $80.56 a barrel in New York close.

Woodside Petroleum Limited increased $1.52 to $36.33 and Santos Limited added 45 cents to $11.90. Origin Energy rose 37 cents to $13.94.

Linc Energy, the coal steam energy maker, soared 27.5 cents or 14% to $2.25.

Commonwealth Bank of Australia increased $0.95 to $48.23 and National Australian Bank increased $1.30 to $22.80. ANZ added 79 cents to $19.80.

Commonwealth reported full year net increased 13% and issued a cautious outlook.

Telstra added 4 cents to $2.83.

JB Hi-Fi added 97 cents to $15.45, David Jones Limited added 8 cents or 2.9% to $2.80 and Wesfarmers Limited increased 72 cents to $28.55. Myer Holdings gained 6 cents to $2.25.