A surprise cut to interest rates in China has triggered a strong rally among mining stocks, pushing the Australian share market higher.
The share market edged slowly towards the key 6,000 level on Monday.
The miners led the gains after the People’s Bank of China’s cut interest rates at the weekend to rekindle the world’s most populous nation’s cooling property market, CMC Markets chief market strategist Michael McCarthy said.
Expectations that the Reserve Bank of Australia on Tuesday may also cut the official rate have buoyed investors, he added.
“A rosier picture for China is good news for Australia,” he said.
“The property sector and Telstra are being well supported by the prospect of an interest rate cut (in Australia) tomorrow and investors are moving ahead of that.”
BHP Billiton was up 47 cents at $34.12 and Rio Tinto had added $1.19 to $65.60.
However, iron ore miner Fortescue Metals was down four cents at $2.45.
Among the major banks, Commonwealth Bank had lifted 63 cents to $92.55, National Australia Bank had gained 42 cents to $38.32, ANZ was up 36 cents at $35.70 and Westpac was 29 cents higher at $38.29.
Property developer Stockland was up 1.71 per cent, or eight cents, at $4.77, while rival Mirvac was up 1.44 per cent, or three cents at $2.11.
Telstra gained five cents to $6.42.
Department store Myer had plunged 10.78 per cent, or 20 cents to $1.655 after the resignation of chief executive Bernie Brookes.
Chemicals and explosives maker Orica was up 68 cents at $20.50 as it announced a buyback of more than $400 million of its own shares.
The supermarket giants were among the worst performers, with Woolworths down $1.42, or 4.62 per cent, at $29.29 following its profit downgrade last week.
Coles’ owner Wesfarmers, caught in the Woolworths’ downdraft, was 55 cents weaker, or 1.25 per cent, at $43.30.
KEY FACTS
* At 1615 AEDT on Monday, the benchmark S&P/ASX200 index was up 30.1 points, or 0.51 per cent, at 5,958.9 points.
* The broader All Ordinaries index was up 27.8 points, or 0.47 per cent, at 5,926.3 points.
* The March share price index futures contract was 23 points higher at 5,937 points, with 23,520 contracts traded.
* National turnover was 1.7 billion securities worth $4.9 billion.
