The Australian share market has closed higher, thanks to gains in the mining sector and a lift in retailers, as the market awaits busy week of economic data.
The benchmark S&P/ASX200 index closed 0.29 per cent higher on Monday, clawing back some of Friday’s 0.81 per cent drop, following modest gains on Wall Street.
CommSec market analyst Steven Daghlian said the local market benefited primarily from a rise in the materials index – which had been under pressure in recent trading sessions – as iron ore hovers around two-and-a-half year highs.
China on Sunday tightened its 2017 economic growth target to around 6.5 per cent, narrowing from its 2016 target range of 6.5 to 7 per cent.
Mr Daghlian said China usually beat its own guidance.
“They tend to aim relatively low so they can kind of hit these achievable levels, and generally exceed them,” he said.
China reported growth of 6.7 per cent in 2016.
Rio Tinto shares closed $1.21 higher at $62.13 and BHP Billiton rose 41 cents to $25.75.
Mr Daghlian said new Australian Bureau of Statistics data showing a 0.4 per cent rise in Australian retail sales in January – following a 0.1 per cent decline in December – gave retailers, including Myer, Harvey Norman and JB Hi-Fi a boost.
“Its certainly an improvement on December, which was a disappointing month for retail spending despite Christmas,” he said.
Retail giant Woolworths was the top performer in the retail space, closing up 29 cents to $25.70.
The big four banks, led by Commonwealth Bank, also closed in positive territory.
Telstra helped lift the telecom service index, closing five cents higher at $4.64 following heavy falls after going ex-dividend last week.
Navitas finished 74 cents, or 14.9 per cent, lower at $4.22, after the education services provider warned that future earnings will be hit by an expected fall in government contracts.
Investors are now awaiting commentary from the Reserve Bank of Australia’s board meeting on Tuesday, although rates are widely expected to be kept on hold.
An AAP survey of 14 economists found a unanimous expectation that the official cash rate would remain at 1.5 per cent.
Further ahead, there will be updates on trade and inflation from China mid-week and US jobs data on Friday ahead of the US Federal Reserve’s meeting next week.
Last Friday, US stocks closed fractionally higher after a late wave of buying as Federal Reserve Chair Janet Yellen indicated interest rates were likely to rise later this month.
Meanwhile, the Australian dollar rose slightly against the greenback.
The local currency was trading at 75.81 US cents at 1700 AEDT on Monday, from 75.54 on Friday.
ON THE ASX:
* At the close, the benchmark S&P/ASX200 was up 16.9 points, or 0.29 per cent, at 5,746.5 points.
* The broader All Ordinaries index was up 13.1 points, or 0.23 per cent, at 5,788.5 points.
* The March SPI200 futures contract was 21 points higher, or 0.37 per cent, at 5,728 points.
*National turnover was 2.83 billion securities traded, worth $4.52 billion.
CURRENCY SNAPSHOT AT 1700 AEDT ON MONDAY
* 75.81 US cents, from 75.54 on Friday
* 86.30 Japanese yen, from 86.30 yen
* 71.48 euro cents, from 71.84 euro cents
* 61.69 British pence, from 61.62 pence
* 108.11 New Zealand cents, from 107.38 NZ cents
GOLD:
The spot price of gold in Sydney at 1700 AEDT was $US1,233.29 per fine ounce, up $US2.79 from $US1,230.50 on Friday.
BOND SNAPSHOT AT 1630 AEDT:
* CGS 5.25pct March 2019, 1.830 pct, from 1.823pct on Friday
* CGS 4.25pct April 2026, 2.757pct, from 2.757pct
Sydney Futures Exchange prices:
* March 2017 10-year bond futures contract at 97.165 (implying a yield of 2.835pct), unchanged from Friday
* March 2017 3-year bond futures contract at 97.950 (2.050pct), from 97.960 (2.040).
(*Currency closes taken at 1700 AEDT previous local session, bond market closes taken at 1630 AEDT previous local session)
