Australian Dollar, Stocks, Commodities Rise

123jump.com Staff
16 Sep, 2009
New York City

Australia

[R]7:00 AM Sydney, Australia – Australia’s leading economic indicator index increased in July as home construction approval rises. BHP Billiton workers union leaders meet to discuss the latest 51% increase in the chief executive pay. More Indian students are attacked in Melbourne, Australia.[/R]

The Australian index of leading economic indicators increased 1.1 to 248.5 and the coincident index was little changed at 238.5. The growing construction permits for homes and capital offering from corporations contributed the rise in the index.

ASX 200 index in Australia increased 110.10 or 2.42% to 4,650.40 and of the stocks in the index, 164 increased, 23 declined and 13 were unchanged.

The global rally in stocks that started in the U.S. and spread to Europe and Asia after Fed Chairman Bernanke indicated that recession is “very likely over” at this time but it will take some time before job market will improve.

The Australian dollar increased 0.8% in New York trading to 87.50 US cents as dollar weakened to a new low against all major currencies.

The latest violent incident against Indian students was reported in Melbourne, Australia. The attack that left two injured that occurred in a bar when at least 15 to 20 people watched the attack when as many as five people participated in the attack. The racial remarks continued even after Police arrived. Police arrested two people but released them after initial questioning.

The attacks come just ahead of Victoria Premier trip to India to convince the Indian government that Melbourne is a safe place to send students.

Australian reputation is damaged after a series of attacks against Indian students this summer that left more than 1,400 people injured over two months. Despite the series of attacks Australian government has still not convicted a single person for racially motivated attacks.

ASX Movers

Goodman Group led the decliners in the S&P ASX 200 index with a loss of 4.1% followed by losses in Austar United Communications Limited of 3.6%, in Primary Health Care Limited of 3.6%, in IOOF Holdings Limited of 2.1% and in Nufarm Limited of 1.4%.

Lynas Corporation Limited led gainers in the S&P ASX 200 index with a rise of 18.8% followed by gains in Carnarvon Petroleum Limited 14.8%, in Macquarie Media Group of 10.0% and in Molopo Australia Limited of 10.0%.

Other Movers

BHP Billiton plc the mining company rose 1.9% to A$39.00 after commodities prices advanced in the region. Gold, silver, copper and crude oil prices inched higher. Separately, workers union leaders at a meeting today are expected to discuss a recent 51% pay hike given to chief executive Marius Kloppers as many of them demand higher wages.

Commonwealth Bank of Australia rose 4.0% to A$48.40 after it said that strong and resilient fundamentals of agribusiness have kept the sector in good health during the past month.

HFA Holdings Limited the hedge fund manager added 3.5% to A$0.29.

Macquarie Group Limited advanced 3.9% to A$51.20 as banks participated in a rally. National Australia Bank Limited added 3.2% to A$29.05 said it plans to issue about $500 million in hybrid tier-1 securities to offshore investors.

Newcrest Mining Limited, the gold miner advanced 4.4% to A$34.95 as gold and silver traded near recent highs. Rio Tinto Limited rose 2.0% to A$60.18.

Telstra increased 4.2% to A$3.24 after communications minister Stephen Conroy in a radio interview that it may offer a stake in broadband Internet networking project to the company. Earlier the minister had suggested that the company may need to separate its consumer business from its fixed line business.

Competition watchdog Graeme Samuel said that the Australian Competition & Consumer Commission will have powers to impose price settlement on Telstra for accessing its Internet network.

Woodside Petroleum Ltd advanced 4.7% to A$50.82 after the oil and gas producer in partnership with Tullow Oil and Repsol discovered natural gas field off the coast of Sierra Leone. The region stretching to Ghana is geologically active and may hold significant untapped gas reserves.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 53.15 or 0.52% to 10,270.77, Hang Seng index in Hong Kong increased 536.55or 2.57% to 21402.92 and CSI 300 index in China lawer 44.41or 1.34% to 3,258.24. ASX 200 index in Australia increased 110.10 or 2.42% to 4,650.40. The FTSE Bursa KL Composite index in Malaysia closed higher 5.51 or 0.46% to 1,212.98.

The Kospi Index in South Korea increased 29.93 or 1.81% to close at 1,683.33. SET index in Thailand closed higher 7.09 or 1.01% to 710.25 and JSE Index in Indonesia increased 19.25 or 0.80% to 2,439.36. The Sensex index in India increased 222.59 or 1.35% to 16,677.04.