Australian Stocks Jump 1.5%, Inflation in China Falls to 2.1%

Marcus Jacob
09 Apr, 2013
New York City

Australian stocks rebounded for the second day and the benchmark index increased 1.5% after China reported a slowdown in inflation. A private survey showed that a business conditions index in Australia dropped to a four-year low.

[R]6:30 PM Sydney – Australian stocks rebounded for the second day and the benchmark index increased 1.5% after China reported a slowdown in inflation. A private survey showed that a business conditions index in Australia dropped to a four-year low.[/R]

Australian stocks opened higher and closed up after China reported a decline in inflation in March and commodities prices edged up.

The ASX 200 index climbed 71.30 or 1.5% to 4,976.80 and the broader All Ordinaries jumped 67.51 to 4,980.22.

Australian dollar closed down to $1.0415 and in stock trading, turnover increased to 1 billion shares worth $4.7 billion.

Consumer price index, a measure of inflation, increased at 2.1% in March after rising at 3.2% in February, according to the latest data released by the National Bureau of Statistics of China.

Stock Movers

Sundance Resources plunged more than half after the company confirmed its takeover from China based Hanlong Mining has collapsed.

Rio Tinto climbed $1.89 to $56.73 and BHP jumped 45 cents to $33.11. Fortescue Metals Group surged 26 cent or 7.3% to $3.84.

Woodside Petroleum gained 78 cents to $35.64 and Santos added 11 cents to $12.29.

Newcrest Mining rose 31 cents to $19.49, Kingsgate up 2 cents to $3.68 and Whitehaven Coal added 8 cents to $2.09.

Echo Entertainment Group Limited increased 3% after the company said it plans to take on Crown Limited’s $1 billion development of casino and hotel complex in Sydney harbor.

David Jones Limited lowered 2 cents to $2.88 and Breville Group rose 11 cents to $6.35. Billabong closed unchanged at 73 cents and Globe International closed unchanged at 41 cents.
Watpac Limited increased after one of the largest construction company in the world acquired 15% stake in the company from its board member Kevin Seymour.

Billabong halted the stock indefinitely as two takeover bid talks drag.

Woolworths increased 36 cents to $34.25. Kathmandu fell 2 cents to $1.96.

Toll Holdings added 13 cents to $5.81, Leighton climbed 56 to $20.09 and Mirvac Group closed unchanged at $1.63. Lend Lease gained 20 cents to $10.56.

The People’s Bank of China approved license for Australian dollar and Chinese yuan for Westpac Banking Corp and ANZ Banking Group.

Westpac jumped 78 cents to $31.30, Commonwealth increased 1.4% to $67.96 and National Australia Bank climbed 2.7% to $31.41 and ANZ jumped 62 cents to $28.48.

Macquarie Group soared $1.11 to $37.11 and Wesfarmers increased 42 cents to $40.49.

Nufarm closed unchanged at $4.35. Linc Energy surged 26 cents or 14.6% to $2.08.

Ruralco Holdings Limited plunged 5.8% to $2.90 after it issued profit warning and said first half core earnings may plunge as much as 70% from a year ago period of $70 million.

Southern Cross Goldfields Limited soared 6.7% after the company agreed to merge with Polymetals Mining Limited.