The share market has closed higher, led by the banking sector, after Japan’s central bank chose to keep its rates on hold.
The benchmark S&P/ASX 200 index closed 0.68 per cent higher after a steady day of trade that ended with a late rally on the back of Japan’s rate decision.
The Bank of Japan decided to hold rates at negative 0.1 per cent, and announced a range of policy changes aimed at supporting long-term rates.
IG chief market analyst Chris Weston said a goal to keep yields on 10-year Japanese government bonds to around zero was aimed at tackling the country’s deflation.
“It was good news all round for the Japanese banks which pushed the Japanese equity market up,” he said.
“This helped lift Australian equities as well.”
The big four banks posted solid gains, while industrials and several big miners also helped lift the market.
ANZ added 45 cents, or 1.7 per cent, to $27.24, NAB gained 36 cents, or 1.3 per cent, to $27.48, Westpac rose 20 cents, or 0.7 per cent, to $29.94 and Commonwealth Bank put on 27 cents, or 0.4 per cent, to $72.89.
BHP gained 11 cents to $20.72 and Rio Tinto added 40 cents to $47.65.
Among the best performers was Sydney Airport, which added 24 cents, or 3.6 per cent, to $6.85, and rail company Aurizon gained 14 cents, or 3.2 per cent, to $4.57.
Seeds and pesticide supplier Nufarm reported a fall in annual profit but good progress in its cost saving initiatives, and its added 38 cents, or 4.6 per cent, to $8.71.
Financial markets are likely to be influenced by the US Federal Reserve’s Federal Open Market Committee’s interest rate decision on Thursday morning, Australian time.
KEY FACTS:
* At the close on Wednesday, the benchmark S&P/ASX 200 index was up 36 points, or 0.68 per cent, at 5,339.6 points.
* The broader All Ordinaries index was up 32.1 points, or 0.59 per cent, at 5,429.4 points.
* The December share price index futures contract was up 39 points at 5,329 points, with 34,247 contracts traded.
* National turnover was 2.7 billion securities traded, worth $5.99 billion.
