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Australia Stocks rises on China stimulus boosts

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Capital Market
Last Updated : Jan 15 2019 | 2:50 PM IST
Headline indices of the Australian financial market closed higher on Tuesday, 15 January 2019, as investors welcomed China stimulus efforts to combat an economic slowdown, a day after weak trade data from the world's second-largest economy. The PBOC cut the RRR rate while the Finance Ministry unveiled fresh fiscal measures. Among ASX sectors, the trade-sensitive energy and mining sectors bounced back from yesterday's lull, while the big banks, retailers, and health care sector had a solid session. At closing bell, the benchmark S&P/ASX200 index added 41.19 points, or 0.71%, to 5,814.57 points, while the broader All Ordinaries index rose 38.53 points, or 0.66%, to 5,871.76 points.

Risk appetite buying in the Sydney market today bolstered after the China's National Development and Reform Commission said in a statement that China will strengthen monitoring of its economic situation and improve its "reserve" of economic policies.

The stimulus from the China's spurred a positive movement in most of the markets, following an unexpected fall in China's December exports and imports. Senior Chinese economic policy officials vowed to increase tax cuts to boost growth, while lending data from the country suggested December estimates may be exceeded.

China's exports to the world fell 4.4% in December from a year earlier, the biggest monthly drop in two years, pointing to further weakening in the world's second-largest economy. Imports also unexpectedly contracted, falling 7.6%, the biggest decline since July 2016. China's global trade volume rose last year but its surplus with the world fell 16.2% to $351.76 billion in 2018, as imports rose 15.8% while exports gained 9.9%.

Among individual stocks, Coca-Cola Amatil fell 2.2 per cent a day after announcing it plans to phase out plastic straws and stirrers in favour of biodegradable products.

Adult education provider Navitas has surged 12.9 per cent after receiving an improved takeover bid from BGH.

CURRENCY: Australian Dollar was up against greenback and against a basket of other peers on Tuesday. The Australian dollar was quoted at 72.14 US cents, from 71.86 on Monday; 78.42 Japanese yen, from 77.69; 62.85 euro cents, from 62.61; 55.90 British pence, from 55.95; and 105.47 NZ cents, from 105.59.

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First Published: Jan 15 2019 | 2:37 PM IST

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