Reuters: Hot Stocks: Banks lead Australian shares to highest close in 5 weeks, NZ hits all-time closing high

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Banks lead Australian shares to highest close in 5 weeks, NZ hits all-time closing high Apr 24th 2013, 07:10 Wed Apr 24, 2013 3:10am EDT (Adds details, comments) SYDNEY, April 24 (Reuters) - Australian shares rose 1.7 percent on Wednesday to close at their highest level in five weeks as financials soared after benign inflation data strengthened the case for more monetary policy easing. A rally on Wall Street overnight also helped boost sentiment. Westpac Banking Corp advanced 2.5 percent to A$32.50 while top lender, The Commonwealth Bank of Australia, gained 2.4 percent to A$71.70. Both stocks were at an all time high. "Since the beginning of the year, the financials have been performing a lot better than the rest of the market," said Steven Daghlian, market analyst at Commonwealth Securities. The stability of the financial factor and a high dividend yield has kept investors buying in, he said. Dividend yield on average for the four big banks is 5.2 percent, compared to between 3-4 percent yields for 12-month maturity depositor accounts. Data on Wednesday showed that Australia's first-quarter core consumer price index (CPI) rose 0.3 percent on-quarter, below a 0.5 percent rise forecast in a Reuters poll, narrowing the odds of further interest rate cuts from the Reserve Bank of Australia (RBA). The market extended its gains after the CPI data came out, Daghlian said. "Before the inflation data came out the market factored in around 25 percent of a rate cut [at next month's meeting] now it's sitting at around 42 percent." The S&P/ASX 200 index climbed 86.2 points to finish at 5,102.4, its highest close since March 15. In comparison, the Asia Pacific jumped 1.2 percent. The benchmark rose 1 percent on Tuesday. JB Hi-Fi rallied 4 percent to reach an 18-month high of A$16.49. Department store David Jones jumped 1.7 percent while rival Myer Holdings Ltd reversed early losses to end 0.6 percent higher. Global miners BHP Billiton and Rio Tinto added 1.1 percent and 1.6 percent, partly recovering from losses a day earlier. Woodside Petroleum Ltd jumped 2.1 percent after the oil company reported it sees full year production witithin range of 88 to 94 million barrels of oil equivalent outlined in February.. Singapore Airlines Ltd has increased its stake in Virgin Australia Holdings Ltd to 19.9 percent, boosting its influence at the carrier at a time of industry jostling to secure lucrative routes in Southeast Asia. Shares in Virgin Australia ended the session up 1.1 percent. Wall Street climbed on Tuesday in a broad rally, recovering from sharp declines sparked by a "bogus" Associated Press tweet about explosions at the White House. New Zealand's benchmark NZX 50 index finished the session 0.5 percent, or 22.5 points to an all-time closing high of 4,539. (Reporting by Thuy Ong; Editing by Sanjeev Miglani) Link this Share this Digg this Email Reprints

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