The Australian share market has closed higher for only the second time this year after key economic data from China met expectations.
But investors are still nervous.
The local bourse had no direction from US markets overnight because Wall Street was closed for the Martin Luther King Day public holiday.
CMC Markets chief market strategist Michael McCarthy said the economic figures out of China on Tuesday showed that in the fourth quarter of 2015 the Chinese economy was fairly steady.
But Mr McCarthy said investors were still nervous about China’s prospects ahead in 2016.
He said the reaction of investors to the Chinese economic data was fascinating.
The immediate response by the market was a rise, then it fell, going below the point it was at when the numbers were released. Then it rose again.
“So, even though I’d suggest that the (Chinese economic) numbers are fairly unambiguous, that sort of behaviour tells me that there’s enough nervousness out there that one bad number could start the selling again,” Mr McCarthy said.
“The market is fragile and skittish – it’s bushfire season.”
China’s economy grew by 6.8 per cent in the fourth quarter of 2015, which was in line with expectations but down a tick from the previous quarter.
In the resources sector, global miner BHP Billiton was up 10 cents at $14.73, and Fortescue Metals eased 2.5 cents to $1.53.
Rio Tinto picked up 13 cents at $38.82. Rio Tinto’s iron ore shipments for 2015 narrowly missed its guidance of 340 million tonnes.
Among the major banks, ANZ rose 18 cents to $24.59, National Australia Bank gained 34 cents at $27.03, Westpac climbed 41 cents to $31.18, and Commonwealth Bank advanced 80 cents to $79.19.
Toll road operator Transurban found 20 cents at $10.29 after its first half revenue rose 18.4 per cent to $900 million.
Mining services company Sedgman was steady at $1.07. Sedgman expects to sharply boost first half profit and has pledged a special dividend for shareholders, as it looks to fend off a takeover bid from construction giant CIMIC.
KEY FACTS:
* At 1619 AEDT the benchmark S&P/ASX200 index was up 44.4 points, or 0.91 per cent, at 4,903.1 points.
* The broader All Ordinaries index was up 43.3 points, or 0.88 per cent, at 4,955.1 points.
* The March share price index futures contract was up 33 points at 4,850 points, with 31,576 contracts traded, according to preliminary calculations.
* Preliminary national turnover was 1.9 billion securities traded worth $4.5 billion.
