Reuters: Hot Stocks: Australia shares rise to 4-1/2 year high; cyclicals soar

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Australia shares rise to 4-1/2 year high; cyclicals soar Mar 6th 2013, 06:10 Wed Mar 6, 2013 1:10am EST (Adds detail, comments) SYDNEY, Mar 6 (Reuters) - Australian shares climbed 0.8 percent on Wednesday to a 4 1/2 year high, and looked set to extend the rally as cyclicals were buoyed by signs of improving domestic and global growth prospects. Investors, who were already upbeat after a record-breaking night for the Dow Jones Industrial Average, received more positive news on the local front. Data on Wednesday showed Australia's economy grew a moderate 0.6 percent last quarter, with gross domestic product (GDP) just above expectations and still well ahead of most of the developed world. "The ASX 200 opened on a firmer footing and found a new wave of buyers after the Q4 GDP print came in-line with expectations with upward revisions to Q3," said Chris Weston, chief market analyst at IG Markets. The S&P/ASX 200 index finished the day 41.4 points higher at 5,116.8, the best closing mark since Sept. 1, 2008. The benchmark rallied 1.3 percent on Tuesday. The market has enjoyed a bull-run and risen 10 percent so far this year on the back of a strong earnings season and diminishing fears about the global growth outlook. The positive local data followed China's pledge on Tuesday of record government spending to boost growth and upbeat U.S. service sector data, which drove the Dow up 0.89 percent to a record-closing high at 14,253.77 points, surpassing the peak seen in 2007. "With the Dow having hit an all-time high, traders on the Australian market did not need a second invitation to join in on the proceedings," said Tim Waterer, senior trader at CMC Markets. "The ASX200 surged through 5,100 points with aplomb... all big name blue chips have had solid outings." Cyclical stocks led the gains. Among banks, Westpac Banking Corp posted the biggest gain in the sector of 1.3 percent to an all-time high of A$31.66. Miners and steel producers, whose earnings cycle is closely tied to global growth outlook, attracted strong demand. BHP Billiton Ltd jumped 1.2 percent and Iluka Resources soared 4.7 percent. Steel producers were firmer with Fortescue Metals Group rallying 3.7 percent and Bluescope Steel climbing 3.5 percent. Oil miners Woodside Petroleum and Oil Search were up 1.4 percent and 3.2 percent respectively. Brent crude broke a five-day losing streak on Tuesday, rising by more than 1 percent toward $112 a barrel on optimism over Chinese demand, record-high U.S. equities and North Sea supply disruptions. "We continue to see further gains in Australian shares over the year ahead," said Shane Oliver, chief economist at AMP Capital. New Zealand's benchmark NZX 50 index closed the session 0.7 percent or 28.8 points higher to 4,298. (Reporting by Thuy Ong; Editing Shri Navaratnam) Link this Share this Digg this Email Reprints

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