Australia Delays China Investments, Stocks Up

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

Australian stocks surged as commodities and metal prices increased. Australian dollar hovered near its recent highs. Australia asked China based Baosteel to resubmit its application for its 15% stake acquisition of Aquila Resources Ltd. Australia has been delaying several China investments.

[R]7:30 AM Sydney, Australia – Australian stocks surged as commodities and metal prices increased. Australian dollar hovered near its recent highs. Australia asked China based Baosteel to resubmit its application for its 15% stake acquisition of Aquila Resources Ltd. Australia has been delaying several China investments in resource sectors.[/R]

Stocks in Australian surged more than 2% as world commodities prices gained. The Australian dollar hovered near its high as gold and silver trade near their 26-year highs and copper perked up.

ASX 200 index in Australia increased 104.10 or 2.27% to 4,695.70 and of the stocks in the index, 150 increased, 34 declined and 16 were unchanged.

The Australian dollar traded near its recent highs of 89.08 U.S. cents and 2-year government bond yield edged up 3 basis points to 4.41%.

China based Baosteel was requested to resubmit acquire 15% stake in the coal and iron ore mining group Aquila Resources. Australia has been delaying the approval of China based investment in Australian mining and resource sector. Foreign Investment Review Board has been triggering the review after 30 days rather than wait till 90 days.

The news was first reported by the Australian Financial Review but did not cite anyone.

ASX Movers

Brambles Limited led the decliners in the S&P ASX 200 index with a loss of 5.5% followed by losses in Singapore Telecommunications Limited of 5.3%, in Sundance Resources Limited of 3.2%, in Hastie Group Limited 2.8% and in Macquarie Media Group of 2.5%.

Straits Resources Limited led gainers in the S&P ASX 200 index with a rise of 9.7% followed by gains in Independence Group NL 9.6%, in Minara Resources Limited of 9.1% and in Fortescue Metals Group Ltd of 9.1%.

Other Movers

BHP Billiton plc added 3.1% to A$37.8 as gold, copper and silver priced edged up in international markets. Rio Tinto Limited climbed 5.2% to A$60.75.

Brambles Limited fell 5.5% to A$7.04 after the provision of supply chain and information management solutions said that chief executive officer Mike Ihlein will retire from his role effective November 1.

Crane Group Limited the metals distribution rose 2.3% to A$10.79.

Independence Group NL the mineral explorer and nickel miner increased 9.6% to A$4.68.

Minara Resources Limited the nickel producer surged 9.1% to A$0.95 and Newcrest Mining Limited the gold miner advanced 6.7% to A$35.15.

Straits Resources Limited the diversified resources company rose 9.7% to A$1.68.

Sundance Resources Limited dropped 3.2% to A$0.15.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 107.80 or 1.11% to 9,799.60, Hang Seng index in Hong Kong increased 430.06 or 2.07% to 21,241.59, ASX 200 index in Australia increased 104.10 or 2.27% to 4,695.70. The FTSE Bursa KL Composite index in Malaysia was higher 5.88 or 0.48% to 1,218.61. CSI 300 index in China were closed today.

The Kospi Index in South Korea decreased 0.44 or 0.03% to close at 1,598.00 SET index in Thailand closed higher 10.53 or 1.44% to 741.92. JSE Index in Indonesia decreased 14.74 or 0.58% to 2,513.41. The Sensex index in India decreased 151.88 or 0.90% to 16,806.66.