Australia Left Rates at 3%; As Expected

123jump.com Staff
07 Jul, 2009
New York City

Stocks in Australia traded sideways ahead of earnings season. The Reserve Bank of Australia left its key lending rate at 3% and offered optimistic outlook for the domestic economy. Energy and materials related stocks edged lower.

[R]8:00 PM Sydney – Stocks in Australia traded sideways ahead of earnings season. The Reserve Bank of Australia left its key lending rate at 3% and offered optimistic outlook for the domestic economy.[/R]

Australian stocks as most Asian markets appear to be in a hold pattern ahead of quarterly earnings. The Reserve Bank of Australia left its key lending rate at 3% and offered cautious outlook on the domestic economy.

The accompanying statement stated that downside risks to the global economy have diminished and said that the U.S. economy was “approaching turning point” and Australia will benefit from the strengthening growth in China.

The Governor Stevens added that the domestic economy conditions are not weak as expected.

Stock market had anticipated rates to be on hold and most interest rate sensitive stocks were not impacted by the announcement but banks eased.

ASX 200 index in Australia decreased 16.80 or 0.44% to 3,766.90 and the Australian dollar increased 0.8% to 79.71 U.S. cents.

Gainers & Losers

Energy and material stocks declined. BHP Billiton declined 1.1% to $32.25 and Rio Tinto dropped 2.3% to $47.35.

Santos declined 2.7% to $13.23 and Woodside Petroleum fell 38 cents to $40.47.

Gold producers declined. Lihir Gold fell 1% to $2.85, Newmont Mining fell 6 cents to $4.96 and Newcrest Mining declined 2% to $29.57.

Commonwealth Bank declined 6 cents to $36.99, National Australia Bank decreased 16 cents to $21.67 and Westpac edged higher 2 cents to $19.10. QBE Insurance increased 25 cents to $19.57.

ASX 200 Index Movers

Boart Longyear Group led the decliners in the ASX 200 index of 9.6% followed by losses in Platinum Australia Limited of 9.4%, in Minara Resources Limited of 9.3%, in Carnarvon Petroleum Ltd 5.4% and in Paladin Energy Ltd of 4.7%.

IOOF Holdings Ltd led gainers in the ASX 200 index with a rise of 7.4% followed by gains in Australand Property Group of 6.3%, in Sino Gold Mining Ltd of 5.7% and Karoon Gas Australia Ltd of 5.6%.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed lower 33.08 or 0.34% to 9,647.79, Hang Seng index in Hong Kong decreased 117.14 or 0.65% to 17,862.27, CSI 300 index in China lower 34.26 or 1.02% to 3,340.49. ASX 200 index in Australia decreased 16.80 or 0.44% to 3,766.90. The KL Composite index in Malaysia closed higher 0.53 or 0.05% to 1,066.36.

The Kospi Index in South Korea increased 5.26 or 0.37% to close at 1,434.20. JSE Index in Indonesia increased 48.24 or 2.37% to 2,083.25. The Sensex index in India increased 127.05 or 0.90% to 14,170.45. The markets of Thailand were closed today.