Gains among Australia’s biggest miners have pushed the Australian sharemarket higher at noon.
The local bourse is more than one per cent stronger as optimism about commodities offsets a lacklustre lead from overseas, Options Xpress analyst Ben LeBrun said.
“We’re looking to finish the week at a commanding level based on the commodities price action overnight,” Mr LeBrun said.
“Besides a disappointing result from ResMed, there’s a tidal wave of green across the screens.”
Higher commodities prices have helped mining stocks after BHP Billiton’s announcement this week that it will defer some port works, which investors hope will help ease the global supply glut for iron ore.
Sentiment in the resources sector has also been buoyed by indications the People’s Bank of China is committed to keep the world’s second largest economy growing by seven per cent a year.
The Chinese central bank this week said it would free up banks to lend more by cutting reserve ratio requirements.
BHP shares were 80 cents, or 2.5 per cent, higher at $31.86, while Rio Tinto climbed $1.24 to $57.54 and Fortescue lifted 13 cents, or 6.2 per cent, to $2.22.
The big four banks were also higher, with the Commonwealth Bank up $1.00 at $91.72, National Australian Bank climbed 25 cents higher to $38.09, while ANZ was up 27 cents to $35.53 and Westpac had gained 20 cents to $38.38.
But ResMed shares were 74 cents, or 7.9 per cent, lower at $8.63 after it achieved a small rise in quarterly profit but says selling prices and currency movements dented its margins.
KEY FACTS
* At 1200 AEST on Friday, the benchmark S&P/ASX200 index was 74.9 points, or 1.29 per cent, higher at 5,917.8
* The broader All Ordinaries index was up 71 points, or 1.09 per cent, at 5,893.3, according to preliminary figures.
* The June share price index futures contract was 72 points higher at 5,903, with 10,151 contracts traded.
* National turnover was 1.05 billion securities worth $3.9 billion.
