Australian Markets React Positively to 7.6% Growth in China

Marcus Jacob
13 Jul, 2012
New York City

Australian stocks rebounded after China reported strong but the slowest economic growth in the three years. Industrial production and retail sales matched the previous quarter data but construction declined. Resources linked stocks gained after commodities and the dollar edged up.

[R]7:30 PM Sydney – Australian stocks rebounded after China reported strong but the slowest economic growth in the three years. Industrial production and retail sales matched the previous quarter data but construction declined. Resources linked stocks gained after commodities and the dollar edged up.[/R]

Australian markets rebounded after China reported slowest economic growth in three years.

The GDP growth declined to 7.6% annual rate in the second quarter to June from the 8.1% increase in the first quarter. The sequential quarterly growth was 1.8% compared to the previous quarter’s revised increase of 1.6%.

In the first half the China’s economy expanded at 7.8% rate according to the data released by the statistics agency.

The ASX 200 index increased 14.20 to 4,082.20 and All Ordinaries index gained 12.37 to 4,118.33. The Australian dollar closed at US$1.016.

China also reported a raft of other economic data that offered a mixed but slowing economic outlook. Retail sales in the quarter were 13.7% compared to 13.8% in the previous quarter.

New property construction in the first half fell to 7.1% and total value of all new homes sold declined 6.5% to 1.9 trillion yuan or $232 billion.

Industrial production growth declined to 9.5% from 9.6% in the previous three months and exports growth in the first half declined sharply to 9.2% from the surge of 24% in the period a year ago.

Stock Movers

News Corp rose 2 cents to $21.44 and Ten Network closed up 0.5 cents at 48 cents and Fairfax Media edged up 0.5 cents to 56 cents.

Resources stocks rebounded after China reported healthy economic growth and retail sales in the second quarter.

BHP Billiton Limited increased 8 cents to $30.48 and Rio Tinto Limited slipped 17 cents to $54.08. Fortescue Metals Group decreased 9 cents to $4.53.

Iluka Resources slumped 18 cents to $8.80 after the zircon miner said first half sales increased 16.2% but issued a cautious outlook on the sales for the rest of the year.

Lynas Corporation Limited rose 1.5 cents to 85 cents, Newcrest Mining declined 33 cents to $21.15 and Kingsgate fell 1 cent to $4.86.

Oil Search Limited down 1 cent to $6.33 and Santos Limited slid 3 cents to $10.37.

Metcash closed unchanged at $3.17, Harvey Norman Holdings fell 1 cent to $1.93 and Woolworths added 3 cents to $26.94. Kathmandu fell 1 cent to $1.09.

David Jones Limited closed up 5 cents at $2.38. Telstra fell 1 cent to $3.84 and Billabong International Limited added 1 cent to $1.08.

Commonwealth Bank of Australia advanced 28 cents to $53.77 and Bank of Queensland added 5 cents to $6.57. ANZ gained 17 cents to $22.35. National Australia Bank rose 14 cents to $23.60 and Westpac Banking Corporation increased 18 cents to $22.05.

Macquarie Group closed up 5 cents at $25.35 and Perpetual Limited advanced 36 cents to $22.66.

Leighton gained 53 cents to $16.08, Stockland increased 6 cents to $3.15 and Toll Holdings decreased 7 cents to $3.76.

Qantas added 1 cent to $1.05, Virgin Australia closed unchanged at 38 cents and Flight Centre increased 4 cents to $20.62.

QR National slipped 12 cents to $3.18.