Reuters: Hot Stocks: Australia shares extend gains, BHP jumps on strong production

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Australia shares extend gains, BHP jumps on strong production Oct 22nd 2013, 00:56 Share this Email Print Reprints Mon Oct 21, 2013 8:56pm EDT (Adds stocks movement, analysts comments) SYDNEY Oct 22 (Reuters) - Australian shares rose 0.3 percent on Tuesday morning, led by BHP Billiton after the global miner posted solid production results, while a rush of U.S. data in coming days kept investors focused on the implications for the Federal Reserve's stimulus programme. BHP Billiton gained 2.1 percent after it posted a 23 percent rise in quarterly iron ore output and raised its production forecast for the 2014 financial year. Rival Rio Tinto Ltd rose 0.6 percent, while Fortescue Metals Group climbed 2.1 percent. The S&P/ASX 200 index rose 16.2 points to 5,638.0 by 0022 GMT, holding around a five-year closing high touched the previous day. The benchmark advanced 0.6 percent on Monday. "The common view in the market is that U.S. is essentially trapped in QE," said Andrew Quin, research strategy coordinator at Patersons Securities. "so at least until new debt ceiling negotiations get agreed probably in February, we doubt they are going to do too much with QE between then and now." Expectations are that the Fed will delay tapering its $85 billion-a-month bond-buying programme, especially after the 16-day government shutdown has raised uncertainty over whether the economy can carry on with reduced stimulus. A senior Fed official said on Monday that it will be "tough" for the Fed to have sufficient confidence in the strength of the U.S. recovery by its meeting in December to start reducing its bond buying. A batch of U.S. data is expected over coming days. The crucial U.S. payrolls report due later in the global day may provide investors with some answers, with a strong outcome likely to feed speculation of a possible December taper. Among banks, top lender Commonwealth Bank of Australia edged up 0.3 percent, and National Australia Bank rose 0.4 percent. ANZ, NAB and Westpac Banking Corp are due to report their full-year earnings in the Next few weeks. "With a week to go before we see ANZ's numbers I expect history to repeat and for these three to rally into their results," said Evan Lucas, a market strategist at IG in a note. Australia's big four banks have enjoyed strong gains this year on the back of robust earnings and generous dividends. David Jones, Australia's second largest department store chain, fell 2.1 percent on news its chief executive was resigning for personal reasons. Sundance Resources Ltd tumbled 7.7 percent after it said it signed agreements to raise A$40 million via the issue of convertible notes to Noble Group Ltd and an investor consortium led by Blackstone. APN News & Media Ltd surged 7.1 percent after the company said it entered exclusive discussions with Quadrant Private Equity to sell its remaining interest in APN outdoor for A$69 million. New Zealand's benchmark NZX 50 index gained 0.5 percent to 4,826.6. (Reporting By Maggie Lu Yueyang; Editing by Shri Navaratnam) Link this Share this Digg this Email Reprints

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