Australian Index Rises 2.4% on Advances in China, Japan

Marcus Jacob
24 Oct, 2011
New York City

Australian stocks surged after Chinese manufacturing expanded in October and Japanese exports increased more than expected in September. Also, a progress in the euro zone negotiations also helped markets sentiment. Resources linked companies and banks led the gainers.

[R]6:00 PM Sydney – Australian stocks surged after Chinese manufacturing expanded in October and Japanese exports increased more than expected in September. Also, a progress in the euro zone negotiations also helped markets sentiment. Resources linked companies and banks led the gainers.[/R]

Stocks in Australia surged on positive news from Asia and improving tone of the discussion among the European leaders.

Japan reported better than expected increase in exports of 2.4% in September and trade surplus was 300 billion yen or $3.9 billion.

A private survey of Chinese manufacturing also showed an increase in activities in October, the first since March of this year, according to the preliminary HSBC China Manufacturing Purchasing Managers Index.

The ASX 200 index surged 2.7% or 113.1 to 4,255.9 and All Ordinaries index gained 2.6% or 110.2 to 4,313.60.

The Australian dollar added 0.4% to US$1.038.

Trading volume increased to 1.69 billion shares worth $4.07 billion with 654 stocks trading higher, 344 falling and 358 unchanged.

Stock Movers

BHP Billiton Ltd closed up $1.15 to $36.85 and Rio Tinto Ltd added $3.06 to $65.63 after China reported faster than expected growth in exports.

Fortescue Metals increased 36 cents to $4.61 Bannerman increased 2.50 cents to 29.50 cents and the company said it will seek a higher bid from China based Hanlong Mining of $144 million.

Oil Search Limited increased 14 cents to $6.02, Santos Limited rose 42 cents to $12.54 and Woodside Petroleum added $1.21 to $34.59.

Origin Energy increased 54 cents to $14.59 and reaffirmed its organic profit increase of 30% in the current fiscal year.

Cochlear Limited gained $2.27 to $60.25.

Commonwealth Bank of Australia closed up $1.23 to $48.78 and National Australia Bank increased 62 cents to $24.94. ANZ edged up $0.50 to $21.71. Westpac fell $0.66 to $22.16.

David Jones Limited closed up 23 cents to $3.23 and Wesfarmers Limited increased $0.87 to $31.87.

Woolworths Limited increased 31 cents to $24.37 and James Hardie Industries SE increased 33 cents to $6.03. Treasury Wine Estate closed unchanged at $3.90.

Qantas Airways Ltd closed up at $1.53.