Reuters: Hot Stocks: Australian shares trim early rally, edge higher on Wall St, weak $AU

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Australian shares trim early rally, edge higher on Wall St, weak $AU May 20th 2013, 06:52 Mon May 20, 2013 2:52am EDT (Adds details, comments) SYDNEY May 20 (Reuters) - Australian shares finished the session 0.5 percent higher on Monday, underpinned by a broad rally as upbeat economic data propelled Wall Street to record highs. Stocks with a large exposure to the U.S. gained on the weaker Australian dollar. The Australian dollar steadied after reaching multi-month lows against the U.S. currency on Monday as investors turned their attention to the outcome of key central bank events later this week. Companies with largely U.S. dollar-based earnings benefit when overseas profits are converted to weakened Australian dollars. QBE Insurance Ltd jumped 1.8 percent while pallets supplier Brambles Ltd rose 0.6 percent. The S&P/ASX 200 index lifted 28.2 points to finish at 5,209 after trading near fresh five-year highs of 5,246.9 earlier in the session. The index rose 0.3 percent on Friday. "I think the market lost a bit of steam in the afternoon session, perhaps there are hints of profit-taking given the high the ASX200 is currently sitting at," said Tim Waterer, senior trader at CMC Markets. "There was just a slight pullback after a particularly strong opening session today." Regionally, MSCI's broadest index of Asia-Pacific shares outside Japan added 0.8 percent, slightly ahead of the local market. Financials also rallied. Westpac Banking Corp climbed 1.4 percent while top lender Commonwealth Bank of Australia finished the session 0.4 percent higher after hitting an all-time high of A$74.18 during earlier trade. The financial sector has been a stellar performer in recent weeks, underpinned by robust earnings and attractive dividend yields of some 5.1 percent on average for the four big banks. In comparison, 12-month deposit accounts yield between 3 percent and 4 percent. "The push higher in financial markets is also being aided by the fact that there is very little in the way of negative global events to dissuade investors from chasing yield," said Waterer. Global iron ore miners also edged higher. BHP Billiton Ltd and Rio Tinto Ltd added 1.1 percent and 0.2 percent respectively. Gold miners bucked the trend, losing ground as bullion fell for a seventh session after a Federal Reserve official said the central bank could start winding down its programme. Newcrest Mining Ltd fell 0.8 percent, while Regis Resources Ltd was down 0.6 percent. Copper and gold miner Ivanhoe Australia Ltd plummeted 14.3 percent after reporting that production at its Osbourne operation declined when a new ore blend was introduced. U.S. stocks continued their climb into uncharted territory on Friday, racking up a fourth consecutive week of gains as encouraging economic data prompted investors to pick up shares of growth companies. New Zealand's benchmark NZX 50 index finished the session flat, up 0.8 points to 4,598.6. (Reporting by Thuy Ong; Editing by Eric Meijer) Link this Share this Digg this Email Reprints

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