Reuters: Hot Stocks: Australia shares push higher despite weaker China factory survey

Reuters: Hot Stocks Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Australia shares push higher despite weaker China factory survey Feb 25th 2013, 06:13 Mon Feb 25, 2013 1:13am EST (Adds details and comments) SYDNEY, Feb 25 (Reuters) - Australian shares rose 0.8 percent, ending below Monday's highs after a survey showed a pull-back in Chinese factory activity, but strong financial and retail stocks kept the index near a 4-1/2 year peak hit last week. Some big miners shed gains after the HSBC China flash purchasing managers' index (PMI) for February slipped to 50.4, the lowest in four months. The number indicated growth in China's giant manufacturing sector pulled back from two-year highs. Rio Tinto Ltd lost 0.9 percent, and the world's No. 4 iron ore producer Fortescue Metals Group Ltd fell 1.7 percent. Top miner BHP Billiton Ltd managed to edge up 0.1 percent. "That's probably based on the fact that China hasn't expanded as fast as they were hoping," said IG Markets strategist Evan Lucas. Financials continued a strong run, with all four major banks trading higher. Westpac Banking Corp led the pack with a 1.7 percent rise, and Commonwealth Bank of Australia, the country's biggest lender, gained 0.3 percent. Stocks paying a strong dividend, such as the banks, were well received by the market, said City Index analyst Peter Esho. "These income-paying stocks are the place to be for the time being, until commodities prices bounce, particularly the base metals," Esho said. Defensive stocks also pushed higher, with Australia's biggest telco company Telstra Corp Ltd rising 1.1 percent. The retail sector had a particular strong day, as department store David Jones Ltd and Myer Holdings Ltd climbed 3.4 percent and 2.6 percent respectively. Supermarket chain Woolworths Ltd gained 1.3 percent, while rival Coles-owner Wesfarmers Ltd rose 2.1 percent. The benchmark S&P/ASX 200 index gained 37.7 points to 5,055.8, according to the latest data. The index rose 0.8 percent on Friday, but lost 0.3 percent last week. The stock market has climbed sharply since November on receding euro zone and U.S. debt concerns, and on a better-than-expected earnings season for Australian companies. With the earnings season winding down, investors will focus on what's happening in Japan, said analysts. Sources told Reuters on Monday that Japan's government was likely to nominate Asian Development Bank President Haruhiko Kuroda, an advocate of aggressive monetary easing, as its next central bank governor. "He will be seen as a fairly market-friendly selection," said IG Markets' Lucas. "It's quite good for our market because it will mean that volumes continue to be good on the ASX and Asian investors continue to push into our market," he said. Australian television station-owner Ten Network Holdings , which sacked its chief executive late on Friday, surged 6.8 percent. Beach Energy Ltd soared 5.8 percent, after it sold interests in two gas blocks in Australia to U.S.-based Chevron Corp. New Zealand's benchmark NZX 50 index rose 0.3 percent to 4,226.4. (Reporting by Maggie Lu Yueyang; Editing by Richard Borsuk) Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions