By Robb M. Stewart
MELBOURNE, Australia--Australian equities rallied in early
trading Wednesday, reversing losses in the previous three sessions
as financial stocks resumed their push higher and earnings results
from retailer David Jones helped lift the consumer sector.
Several traders had anticipated the local market would take its
lead from weaker U.S. markets overnight as uncertainties persist
over the recovery in the world's biggest economy.
"It was definitely surprising to see shares up as much as they
are," said Tim Radford, an analyst at Rivkin Securities Pty. Ltd.
in Sydney. "We could see those gains erode into the close given
[weakness in] the rest of the region as investors focus on broader
concerns, namely the U.S. economy."
Traders at IG in Melbourne said market volumes had been lighter
than usual.
At 0215 GMT, the benchmark S&P/ASX 200 index was 0.7% higher
at 5274.5, still in sight of the five-year high of 5300.1 hit
during trading last Thursday. Strength in the banks, energy and
mining sectors added to the broad-based gains.
National Australia Bank was 1.5% higher, while rival lenders
Commonwealth Bank, ANZ and Westpac were each up between 0.2% and
0.7%.
David Jones jumped 6.5% on the back of what IG market strategist
Evan Lucas said was a solid full-year result given retail market
conditions, and after the company declared a slightly
higher-than-expected dividend. Shares in rival Myer were up 1%.
BHP Billiton's shares were up 0.5% after a blunt assessment from
the miner of the pressure increased supply would put on prices, and
a more positive longer-term view of growing demand for some of its
industrial-metals, energy and agricultural products.
Resilience in the iron-ore price helped lift Fortescue Metals
3.5%, with sentiment further supported by Chairman Andrew Forrest's
recent purchase of more shares in the company.
Write to Robb M. Stewart at robb.stewart@wsj.com
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