The Australian share market has made strong gains as investors took heart from economic data out of China and prices for gold, oil and copper lifted in Asia.
OptionsXpress market analyst Ben Le Brun said the local bourse had a rocket put under it on Tuesday, which was against expectations.
“We’ve had plenty of economic data out of China which the market has found comforting. We’re watching commodities trend higher in Asia,” he said.
Mr Le Brun said the decision by the Reserve Bank of Australia to hold interest rates at a record low of two per cent for a seventh straight month was “the non-event of the day in terms of moving the share market”.
Two monthly indicators of activity in China’s manufacturing sector were released on Tuesday.
The official Purchasing Managers’ Index showed a contraction in November for a fourth straight month and was below expectations.
Separately, the private Caixin/Markit purchasing managers’ index for manufacturing also indicated a contraction but not as bad as in the previous month.
The official index includes more of China’s larger, state-owned enterprises while the Caixin survey is weighted to smaller, private enterprises.
“Net-net, the market is comfortable with signs of stabilisation, and there’s the potential for the People’s Bank of China to stimulate again (undertake more economic stimulus measures),” Mr Le Brun said.
In the resources sector, global miner BHP Billiton jumped 66 cents, or 3.65 per cent, to $18.75, Rio Tinto added $1.01 to $46.92, and Fortescue Metals gained three cents to $1.99.
Oil and gas producer Woodside Petroleum was up 70 cents at $30.81, and Santos firmed five cents to $4.06.
Gold miner Newcrest improved 40 cents, or 3.67 per cent, to $11.31.
Among the major banks, ANZ put on 64 cents at $27.79, National Australia Bank lifted 52 cents to $29.91, Commonwealth Bank advanced $1.56 to $80.99, and Westpac strengthened 64 cents to $32.79.
Law firm Slater and Gordon continued to claw back ground lost late last week, rising 26 cents, or 28.11 per cent, to $1.185.
KEY FACTS
* At 1621 AEDT on Tuesday, the benchmark S&P/ASX200 index was up 99.6 points, or 1.93 per cent, at 5,266.1 points.
* The broader All Ordinaries index was up 94.4 points, or 1.81 per cent, at 5,312.6 points.
* The December share price index futures contract was up 79 points at 5,265 points, with 43,179 contracts traded, according to preliminary calculations.
* Preliminary national turnover was 1.87 billion securities worth $5.45 billion.
