Australia's share market held on to early strong gains, sparked by a rally on overseas markets overnight, to close higher for a third consecutive week. The dollar trimmed its advance but remained almost 2 cents higher.
The benchmark S&P/ASX200 index ended up 83.7 points, or 1.9 per cent, at 4,458.4 points, while the broader All Ordinaries index gained 80.3 points, or 1.8 per cent, to 4,475.1 points.
For the week, the ASX200 rose 0.8 per cent, making it the first stretch of three weekly gains in a row since the middle of April.
Among key sub-indexes, financials surged 2.2 per cent, materials added 2.1 per cent and industrials rose 1.9 per cent.
What you need to know
- The Australian dollar was buying 89.2 US cents
- Asian shares advanced on strong earnings
- Spot gold was steady at $US1195 an ounce
- Crude oil hovered above $US79 a barrel
- Dow futures were off 7 points to 10260
US stocks rose amid better-than-expected corporate earnings, despite economic uncertainty, with the main indexes rising 2 per cent or more, buyoyed by second-quarter earnings, especially those of Dow members AT&T, Caterpillar and 3M. Microsoft also served up a strong result after markets closed.
Wall Street had a positive finish overnight following strong second-quarter earnings results from Caterpillar, AT&T, 3M, UPS, American Express and Microsoft.There was also reassurance from Federal Reserve chairman Ben Bernanke on Thursday that the US Federal Reserve was ready to act if the American economy did not continue to improve.
Shaw Stockbroking senior dealer Jamie Spiteri said the strong performance on Wall Street had rippled across the globe, with similar rallies across Europe and Asia.
''Despite the fact that activity in our market is still on the lower side in comparison to what was being turned over a few months ago, our volume here today is certainly better than what we've seen in recent weeks,'' Mr Spiteri said.
Stress tests
Mr Spiteri said the release of European bank stress test results later tonight (AEST) could further reassure the market.
''What it will do is potentially give some reassurance to markets that the uncertainty and vulnerability that is there among the banking sector in Europe is still being managed in the best possible way,'' he said.
A Spanish newspaper reported, however, that several Spanish banks have failed the tests, sending the euro lower against the US dollar in recent trading.
Among mining stocks, BHP Billiton gained 80 cents to $39.68, Rio Tinto adding $1.63, or 2.39 per cent, at $69.86 and Fortescue Metals rising 17 cents, or 4.21 per cent, at $4.21.
Financials were also stronger, with Commonwealth Bank up $1.32, or 2.64 per cent, at $51.24, Westpac up 58 cents, or 2.62 per cent, at $22.73 and ANZ up 31 cents at $22.41.
National Australia Bank added 61 cents, or 2.57 per cent, at $24.37 despite news that law firm Maurice Blackburn said it would soon file a class action against the bank for failing to disclose its exposure to $1.2 billion worth of collateralised debt obligations (CDOs).
Woodside Petroleum reported a fall in production in the second quarter of calendar 2010 but higher commodity prices boosted revenue by almost 50 per cent.
Woodside shares were up 92 cents, or 2.24 per cent, at $41.92.
Gold, most-traded
The price of gold at 1630 AEST was $US1,195.90 per fine ounce, up $US11.45 on Thursday’s close of $US1,184.45.
The top-traded stock by volume was Continental Coal, with 194.7 million shares worth $12.51 million changing hands.
Continental shares were up 1.1 cents, or 19.3 per cent, at 6.8 cents.
Preliminary market turnover was 2.15 billion shares worth $5.08 billion, with 742 stocks up, 306 down and 316 unchanged.
On the Sydney Futures Exchange, the September share price index futures contract was up 89 points to 4,437 points, with 28,503 contracts traded.
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AAP, with BusinessDay