The Australian share market has closed the day higher, boosted by signs from China the country is considering fresh measures to stimulate stuttering growth.
The benchmark S&P/ASX200 index rose 41.2 points, or 0.71 per cent, to a new nine-week high of 5,814.6 at 1615 AEDT on Tuesday, recovering from a subdued open after China’s state planner hinted the country will strengthen monitoring of its economic situation and improve its “reserve” of economic policies.
The broader All Ordinaries was up 38.6 points, or 0.66 per cent, at 5,871.8.
The Aussie dollar also rose, buying 72.14 US cents from 71.86 US cents on Monday.
CommSec markets analyst James Tao said the news out of China was a welcome change after Monday’s glum trade data.
“(China is) looking to boost the market – and they’ll be doing a little bit more a bit later in the month, so it’s certainly a good start,” he said.
“It’s a lot more upbeat and an optimistic tone coming through after yesterday’s trade figures, more conducive for our market to prosper.”
The trade-sensitive energy and mining sectors bounced back from yesterday’s lull, while the big banks, retailers, and health care sector had a solid session.
Origin Energy climbed 3.18 per cent to $7.13 and Beach Energy lifted 4.15 per cent to $1.63 after Red Sky Energy agreed an extension of agreement to obtain its Innamincka Dome Project.
Woodside Petroleum was up 1.15 per cent to $33.46, Santos was up 1.2 per cent to $5.90 and Oil Search rose 0.93 per cent to $7.62.
The big miners reclaimed losses made earlier in the session, with BHP shares up 1.07 per cent to $33.06 and Rio Tinto up 0.76 per cent to $80.00.
The major gold miners came out in front, led by a 2.12 per cent gain for Evolution, while Bluescope Steel rose 3.64 per cent to $11.97 and Fortescue Metals jumped 0.66 per cent to $4.55.
Financials were buoyant, with Commonwealth Bank and ANZ leading the charge for the big four, up 1.02 per cent and 0.67 per cent respectively.
IOOF shares rose 2.77 per cent to $5.56 after its buyout of pension assets from ANZ was delayed by at least three months
Macquarie Group climbed 1.5 per cent to $114.98 and insurers QBE, IAG and Suncorp all banked near one per cent gains.
Meanwhile, shares in superannuation platform HUB24 Ltd shot up 5.95 per cent to $13.00 after the company announced record net inflows.
Supermarket Coles dropped 1.09 per cent to $11.76, while rival Woolworths was also lower, down 0.1 per cent to $29.68.
Coca-Cola Amatil is trading 2.15 per cent lower at $8.15 a day after announcing it plans to phase out plastic straws and stirrers in favour of biodegradable products.
Adult education provider Navitas has surged 12.86 per cent to $5.53 after receiving an improved takeover bid from BGH.
Telstra fell 0.68 per cent lower to weigh on the telco sector, but Ooh! Media is up 6.74 per cent to $3.80.
Biotech CSL surged 1.82 per cent to $197.91 to lift health care stocks.
ON THE ASX:
* The benchmark S&P/ASX200 index was up 41.2 points, or 0.71 per cent, to 5,814.6
* The All Ordinaries was up 38.6 points, or 0.66 per cent, to 5,871.8
* At 1630 AEDT, the SPI200 futures index was up 38 points, or 0.66 per cent, at 5,754.0
CURRENCY SNAPSHOT AT 1630 AEDT:
One Australian dollar buys:
* 72.14 US cents, from 71.86 on Monday
* 78.42 Japanese yen, from 77.69
* 62.85 euro cents, from 62.61
* 55.90 British pence, from 55.95
* 105.47 NZ cents, from 105.59
The spot price of gold in Sydney at 1630 AEDT was $US1,290.52 per fine ounce, from $US1,291.04 on Monday.