The Australian share market finished higher for a second consecutive session, with investors feeling more confident about taking risks following positive Chinese economic data last week.
The benchmark S&P/ASX200 index was up 22.9 points, or 0.56 per cent, at 4,105.1, while the broader All Ordinaries index was up by 24.9 points, or 0.60 per cent, at 4,143.2.
The market gave up some early gains after being 40 points up, but it was the second consecutive day of gains following a six-day run of losses to last Thursday.
All sector indices were up except for telcos and real estate investment trusts. Energy stocks rose 1.2 per cent, materials rose 1 per cent and financials 0.4 per cent.
Whitehaven Coal was the biggest gainer among the top 200 shares. It surged 62 cents, or 17.97 per cent, to $4.07 after billionaire Nathan Tinkler made a formal bid for the company.
Seven West Media was in a trading halt after the group announced a $440 million capital raising to reduce its debt. Seven West media last traded at $1.62, with the new shares to be sold at $1.32.
Other media shares ended mostly flat or lower on the Seven West news. Seven Group Holdings, the biggest shareholder in Seven West, ended the day down 8 cents, or 1.2 per cent, to $6.70. The company is two-thirds owned by Kerry Stokes.
Fairfax Media, publisher of this website, lost 1 cent, or 1.8 per cent, to close at 55 cents.
Ten Network and APN ended the day flat at 48 cents and 60 cents, respectively.
Europe edges lower
European stocks, meanwhile, have opened lower, with the FTSEurofirst 300 falling 0.2 per cent to 1,040.85 points.
"I wouldn't say there is too much optimism," said Francois Duhen, equity strategist at CM-CIC Securities in Paris. "To my clients, I am calling it a profit warning season."
US stocks, though, had given Australia a positive lead with Wall Street breaking a six-day losing streak on Friday.
CMC Markets senior trader Tim Waterer said markets had taken heart out of China, Australia’s biggest trading partner, announcing that its economy grew by 7.6 per cent in the second quarter of 2012.
That was a fall but was not as had as some economists had forecast and led to a move out of investing in the safe haven of the US dollar and into more growth oriented commodities including oil.
‘‘The flow-on effect pushed commodity prices higher and translated into gains in mining stocks today, lifting the market overall,’’ Mr Waterer told AAP.
‘‘Positive indicators around the globe have been few and far between of late, so we’ll take small mercies such as the Chinese GDP number allaying fears of a severe slowdown.’’
Asian markets including China and Hong Kong, also rose earlier today.
Miners advance
In the Australian resources sector, global miner BHP Billiton gained 29 cents, or 0.95 per cent to $30.77, and Rio Tinto improved 41 cents to $54.49.
Shares in Newcrest, Australia’s largest gold miner, gave up some early gains but still advanced by 35 cents, or 1.65 per cent, to close at at $21.50.
Woodside Petroleum climbed 26 cents to $30.56 on the same day it received environmental approval for its controversial $30 billion gas development in Western Australia’s Kimberley region.
Fellow oil and gas play Santos was off four cents to $10.33.
Among the major banks, Westpac was 11 cents higher at $22.16 as it said it would raise $500 million through the issue of subordinated notes.
The National Australia Bank shed 10 cents to $23.50 and ANZ rose 13 cents at $22.48. Commonwealth Bank touched its highest intra-day price in 17 months at $54.30 before easing back to end the day up 29 cents to $54.06.
The September share price index futures contract was 23 points higher at 4,072, with 18,562 contracts traded.
National turnover was 1.1 billion securities worth $2.8 billion, with 503 stocks up, 356 down and 352 unchanged.
AAP with BusinessDay