By Rhiannon Hoyle
SYDNEY--Australian shares closed higher Thursday, buoyed by
upbeat Chinese services figures.
A benchmark index tracking the nation's top 200 companies ended
Sydney trading at 5234.9, up 0.4% on Wednesday's close. Volumes
were low, however, with many investors sidelined as markets in
mainland China remained closed for the Golden Week holiday.
Local investors were also cautious of big bets ahead of a long
weekend in several Australian states, as parts of the country
celebrate Labour Day on Monday.
Analysts said financial markets took comfort from the latest
economic data out of China, where the official non-manufacturing
purchasing managers' index printed a six-month high. Australia's
share market tends to take cues from economic indicators in China,
as it is the Pacific nation's largest trading partner.
A rise in resources stocks helped pull the index higher, said IG
Chief Market Strategist Chris Weston. In addition to upbeat China
numbers, an increase in the value of base metals like copper, and a
stabilization in the iron-ore price, lifted mining equities,
analysts said.
The country's largest mining companies, BHP Billiton Ltd.
(BHP.AU) and Rio Tinto PLC (RIO.AU), both closed 0.8% higher.
Supermarket retailer Woolworths Ltd. (WOW.AU) closed up 0.3%, while
Commonwealth Bank of Australia (CBA.AU) ended virtually
unchanged.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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