Australian Indexes Rebound on Chinese Trade Data

Marcus Jacob
08 May, 2013
New York City

Australian index closed higher after China reported faster growth in imports that exports. Resource stocks led the market recovery. Rio Tinto said it is on track for its iron ore expansion plans.

[R]5:00 PM Sydney – Australian index closed higher after China reported faster growth in imports that exports. Resource stocks led the market recovery. Rio Tinto said it is on track for its iron ore expansion plans.[/R]

Australian indexes gained on the strength in resource stocks after China reported a surge in exports and imports in April.

The ASX 200 index increased 56.10 or 1.1%to 5,199.80 and the broader All Ordinaries gained 55.20 to 5,177.90.

Australian dollar closed down to $1.018 against the U.S. dollar and in stock trading turnover increased to 936 million worth $5.3 billion.

China’s exports in April increased 14.7% and imports rose 16.8% and trade surplus was US$18.2 billion, Customs Administration said today.

The surge in exports and imports after few months of volatile trade data lifted market indexes across Asia.

Stocks in Review

Rio Tinto jumped $1.51 to $58.90 and BHP gained 63 cents to $34.30.

In a conference in Singapore, Alan Smith of Rio Tinto said “its iron ore output expansion plans intact and expects Chinese steel demand to continue to grow nearly 3% per year.”

Woodside Petroleum Limited fell 6 cents to $37.02.

David Jones Limited rose 5 cents to $2.90 and Breville Group climbed 26 cents to $7.15.

Woolworths slipped 23 cents to $34.55.

Mirvac Group added 4 cents to $1.72. Lend Lease gained 14 cents to $10.79.

Westpac increased 37 cents to $32.95, Commonwealth up 1.3% to $71.23 and National Australia Bank rose 1.3% to $33.37 and ANZ gained 0.9% to $31.46.

Seven West Media Limited surged 21 cents or 10% to $2.30 after chief executive officer Donald Rudolph Voelte said “he is expecting net profits after tax to fall by 2% to 4% this financial year”.

Telstra Corporation Limited rose 1.2% to $5.07 after the $10.4 million partnership with Seven West Media Limited for online consumer health website HealthEngine.

WorleyParsons Limited increased 21 cents to $23.82 after it received designing contract for $90 million from Maersk Oil Qatar.