China GDP Growth Lifts Australian Indexes, Dollar to 6-day High

Marcus Jacob
21 Oct, 2014
New York City

Australian market indexes advanced for the sixth day in a row and the Aussie dollar inched higher after China reported better-than-expected quarterly economic growth of 7%. Industrial production also surged to 8% in the quarter. Newcrest Mining eased after production fell 12%.

[R]5:30 PM Sydney – Australian market indexes advanced for the sixth day in a row and the Aussie dollar inched higher after China reported better-than-expected quarterly economic growth of 7%. Industrial production also surged to 8% in the quarter. Newcrest Mining eased after production fell 12%.[/R]

Australian markets managed to shake off early losses and closed higher for the sixth day in a row and commodities gained after China reported better than expected economic data.

Chinese government agency reported September quarter economic growth was better-than-expected at 7.3% and industrial production rose 8%.

The better than economic data lifted the Aussie dollar after the GDP growth was near the target set by the Chinese government.

Australian dollar weakened to 88.17 U.S. cents and in stock-trading turnover jumped to 452 million shares worth $3.85 billion.

ASX 200 Index edged up 5.60 to 5,325 and broader All Ordinaries Index rose 5.15 to 5,312.47.

Australian Stock Movers

Macquarie Atlas Roads Limited climbed 5.9% to $3.04 after the toll roads operator reported average toll revenue for the third-quarter ending in September jumped 2.6%.

Toll revenues in Paris, France rose 1.8% to €597 million and toll revenue from Dulles Greenway in Virginia, United States climbed 6.6% to $221.89 million from a year ago period.

The company said toll revenue from Chicago, Illinois based roads jumped 2.3% to $252.39 million. Indiana toll revenue surged 8.4% to $953.95 million from a year ago period.

Newcrest Mining Limited slipped 0.3% to $9.78 after the gold, copper and silver producer reiterated its full-year output guidance, despite a 12% decline in first-quarter gold production.

The company reported gold production in the quarter plunged 12% to 561,731 ounces.

The company said copper production in the third-quarter jumped 7% to 24,831 tons compared to 22,871 tons in fourth-quarter and 19,632 tons from the same period of a year ago.

Southern Cross Media Group Ltd plunged 6.5% to 86.5 cents after the broadcasting company revised its revenue forecast to $331.9 million, decrease of 8%.

Rhys Holleran, chief executive estimated earnings before interest, tax, depreciation and amortization for the first-half to fall 18% to $105.1 million.