Reuters: Hot Stocks: Australia shares up 0.5 pct on China survey news

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Australia shares up 0.5 pct on China survey news Jan 24th 2013, 06:19 Thu Jan 24, 2013 1:19am EST MELBOURNE, Jan 24 (Reuters) - Australian shares closed up 0.5 percent on Thursday, a fresh 21-month high after reversing morning losses when a measure of growth in China's factory sector accelerated to a two-year high in January, boosting local miners. It was the seventh straight daily gain for the local market and marks an 11 percent rally from November lows. The HSBC flash purchasing managers' index (PMI) for China rose to 51.9 in January, the highest since January 2011. . The positive read from China, Australia's top export market, helped BHP Billiton recover from earlier losses to end 0.3 percent higher. "Our markets have done a U-turn in afternoon trade," said Ben Taylor, trader at CMC Markets. "Traders view today's PMI manufacturing result as providing further evidence that the Chinese recovery is underway and will be maintained," he said. The pace of growth in China should increase to 8.2 percent this year and 8.5 percent in 2014, the International Monetary Fund said. The benchmark S&P/ASX 200 index rose 22.4 points to 4,810.20, according to the latest data, the best close since May 2, 2011. New Zealand's benchmark NZX 50 index inched up 0.1 percent to 4,189.9. Top banks led gains, with Westpac Banking Corp and National Australia Bank both up 1.3 percent to the highest close since May 2011, ending at A$27.10 and A$27.09 respectively. "Investors see any fall in Australian growth to be met with rate cuts which should be supportive for yield plays like the banks," said Taylor. "Traders are now looking for the next catalyst to drive the markets higher. Many are pointing to continuous central banks' support around the world, a rebounding China, improving risk in Europe and general low inflation as drivers," he said. The country's leading telecommunications company Telstra Corp gained 1.1 percent to A$4.56. Linc Energy surged 24 percent to A$2.67, a day after it said two independent reports had confirmed it is sitting on potentially large resources of shale oil in South Australia. OZ Minerals Ltd slid 6.3 percent to A$6.85 after the company posted a drop in its December quarter production. Energy Resources of Australia rose 5.6 percent to A$1.41 after it said agreements covering the Ranger Project Area in its Northern Territory uranium mine were established with Mirarr Traditional Owners, the Northern Land Council and the government. Retailer Noni B plunged 14 percent to A$0.75 after it warned first half profit would drop to between A$1.7 million and A$1.9 million, from $2.4 million a year earlier. (Reporting by Miranda Maxwell; Editing by Richard Borsuk) Link this Share this Digg this Email Reprints

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