Reuters: Hot Stocks: Australia shares touch 2-1/2 month high on Wall St, metals prices

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Australia shares touch 2-1/2 month high on Wall St, metals prices Aug 2nd 2013, 01:44 Thu Aug 1, 2013 9:44pm EDT (Adds analysis, quotes, stocks on the move) SYDNEY Aug 2 (Reuters) - Australian shares rose 0.9 percent on Friday, driven by the financial and mining sectors to touch a 2-1/2 month high after Wall Street notched strong gains and metals prices rose. Banks underpinned the market, recovering from a selloff on Thursday after Federal Treasurer Chris Bowen said he was in discussion with banks about a levy on deposits. Westpac Banking Corp climbed 1.5 percent while Australia and New Zealand Banking Group jumped 1.8 percent. National Australia Bank rallied 1 percent. "With reports confirming that the levy will be five basis points and given the likelihood that banks will be able to pass this cost on to customers, the impact on their bottom line seems limited," said Ric Spooner, chief market analyst at CMC Markets in a note. The S&P/ASX 200 index rose 47.8 points to 5,109.3 by 0131 GMT, as investors await key U.S. non-farm payrolls data that could offer clues on the timing of the Fed's stimulus reduction due later in the global day. The benchmark rose 0.2 percent on Thursday and has bounced back from a trough of 4,632.3 points hit on 25 June as fading worries about the U.S. Federal Reserve tapering its stimulus programme prematurely and a recovery in commodity prices helped bolster investor sentiment. "The market has digested the idea that the U.S. tapering will occur at some point," said Andrew Doherty, head of equities at Morningstar, an independent research house based in Sydney. "There's been a reappraisal and revaluation that has seen moves back into high-yielding stocks providing decent returns for investors." Miners posted strong gains after copper prices rose to their highest level in a week on Thursday following upbeat China and European manufacturing data. BHP Billiton Ltd and Rio Tinto Ltd climbed 1.2 percent and 1.6 percent respectively. Elsewhere, defensives were trading higher. QBE Insurance Group Ltd soared 2.4 percent while telecommunications provider Telstra Corporation Ltd added 0.8 percent. The Dow and S&P 500 hit record closing highs on Thursday, with the S&P 500 topping 1,700 after strong data on factory growth and as major central banks said they would keep monetary stimulus in place. New Zealand's benchmark NZX 50 index rose 0.7 percent to 4,578.9 points. STOCKS ON THE MOVE * Blackthorn Resources Ltd tumbled 9.6 percent to A$0.24, a near two-week low, after the company said forecast delays in deliveries and export sales at its Perkoa project in West Africa will require an additional $30 million. The company is in discussions with partner Glencore on a range of funding alternatives. (0127 GMT) * FAR Ltd surged 10.8 percent to A$0.04, a four-month high after the company said it had secured full funding for two exploration wells, an investment worth around $190 million. (0128 GMT) * Samson Oil and Gas Ltd surged 11.6 percent to A$0.05, its highest point since December after the company announced the termination of its Roosevelt county sale agreement. (0130 GMT) (Reporting by Thuy Ong; Editing by Eric Meijer) Link this Share this Digg this Email Reprints

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