🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

Australia shares rise on firm oil prices, dovish Fed minutes

Published 09/10/2015, 01:12 pm
Updated 09/10/2015, 01:19 pm
© Reuters.  Australia shares rise on firm oil prices, dovish Fed minutes
AXJO
-
CSGN
-
BHP
-
ANZ
-
RIO
-
BHPB
-
NAB
-
RIO
-
STO
-
WDS
-

* Miners among top performers

* Resources stocks underpinned by oil price jump (Adds analysis, quotes, stocks on the move)

By Pauline Askin and Cecile Lefort

SYDNEY/WELLINGTON, Oct 9 (Reuters) - Australian shares rose for a fifth straight session on Friday, in a broad-based rally buoyed by what investors saw as the dovish minutes of the U.S. Federal Reserve's last meeting.

The minutes from the Sept. 16-17 meeting published on Thursday pointed to a deeply cautious Fed - even before news of a sharp slowdown in hiring by U.S. employers.

The S&P/ASX 200 index .AXJO rose 0.9 percent or 49.7 points to 5,260.1 by 0138 GMT. The benchmark rose 0.2 percent to 5,112.1 in the previous session and is on track for its second weekly gain.

Analysts expect the ASX 200 to trade in a range of 4,900-5,300 in the absence of fresh catalysts.

"It the perception that easier Fed policy means a weaker U.S. dollar and that helps emerging markets like China to grow," said Damien Boey, equity strategist, Credit Suisse (SIX:CSGN).

"I'm not sure that we've seen the end of the problems for China yet but none the less, that's what investors seem to be pricing in."

Major banks ANZ ANZ.AX rose 1.22 percent, while NAB NAB.AX was up 0.5 percent. Mining giants Rio Tinto (LONDON:RIO) RIO.AX and BHP Billiton (LONDON:BLT) BHP.AX gained nearly 3 percent and 2 percent respectively.

"The gains have been driven by the resources sectors...they've been the first to bounce in this relief rally," Boey said.

A rise in world oil prices boosted energy stocks. Beach Energy jumped 13.2 percent while Santos STO.AX gained 4.8 percent and Woodside Petroleum WPL.AX was up 1.23 percent.

Asian shares followed Wall Streets lead as well as a climb in oil prices. ID:nL3N1280MY

For more individual stocks activity click on STXBZ

New Zealand's benchmark NZX 50 index .NZ50 rose 0.6 percent or 34.9 points to 5,660.67, to be up 1.1 percent for the week.

Resistance was found at 5,668, a key retracement level tested on Thursday. A sustained break would target the September high of 5,725.89.

Telecommunications and utilities underpinned gains with Spark New Zealand SPK.NZ , Mighty River Power MRP.NZ and Contact Energy CEN.NZ up around 1 percent.

A2 Milk ATM.NZ was the top outperformer with its share price up 4 percent. It climbed to its highest in seven weeks after it announced the completion of a share placement. ID:nWNBS01FQO The stock is up around 30 percent so far this year.

Shares in Fonterra's FCG.NZ fund, which provides investor exposure to the farmer-owned dairy exporter, managed to gain 1.3 percent for the week, having recovered from a trade agreement between 12 Asia-Pacific nations that was less generous to the dairy industry than expected.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.