Reuters: Hot Stocks: Australia shares up 0.5 pct on China revival, post-election optimism

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Australia shares up 0.5 pct on China revival, post-election optimism Sep 10th 2013, 01:55 Mon Sep 9, 2013 9:55pm EDT (Adds stock movements, comments) SYDNEY, Sept 10 (Reuters) - Australian shares rose 0.5 percent on Tuesday morning, underpinned by big miners as the pace of growth in China, their biggest customer, appears to have bottomed, and investors became more optimistic for the domestic demand outlook after the federal election. Global miners BHP Billiton Ltd and Rio Tinto Ltd climbed 0.9 percent and 1.6 percent respectively, as a slew of solid data from China spurred hope for the country's economic turn-around. "If Chinese economic data continues surprising on the upside over the coming weeks, materials stocks could also weigh in on a strong push by the broader market above 5,250," Rivkin global analyst Tim Radford said in a note. Mining services companies also benefited from restored confidence in the resources sector. Emeco Holdings Ltd jumped 8.0 percent, having surged 50 percent in September, while Boart Longyear climbed 1.8 percent, gaining 22 percent for the month. "All the mining services stocks had a significant rerating in prices over the last month," said James McGlew, executive director of corporate stockbroking at Argonaut, adding contrarian investors were buying back these stocks after they were oversold earlier this year. "We saw the baby going out with the bath water when the gold price had its big drop a couple of months ago," he said. The S&P/ASX 200 index rose 27.8 points to 5,209.3 by 0140 GMT, reaching a fresh 3-1/2 month high. The benchmark rose 0.7 percent on Monday. Big banks traded higher as well, with top lender Commonwealth Bank of Australia up 0.4 percent and Westpac Banking Corp Ltd rising 1 percent. "Purely from a momentum perspective, and as investors again go searching for higher yields on expectations of another rate cut in 2013, we could see increasing demand for banks to drive the market to new multi-year highs," Radford said. Domestic consumer stocks mostly had a better run, as investors are betting the newly elected coalition government would restore stability to the market, Argonaut's McGlew said. Wesfarmers Ltd, owner of supermarket chain Coles rose 0.1 percent, while rival Woolworths Ltd was almost flat. Electronics retailer JB Hi-Fi Ltd gained 0.8 percent. "The consumers are clearly looking at the fact this is going to be a two-term government. It's normally friendly to the consumer with regards to tax policies," McGlew said. "There is certainly a degree of optimism." Australia's biggest phone company Telstra Corp Ltd rose 1.1 percent. New Zealand's benchmark NZX 50 index added 0.3 percent to 4,629.3 (Reporting By Maggie Lu Yueyang; Editing by Eric Meijer) Link this Share this Digg this Email Reprints

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