SYDNEY: Australian stocks gained 0.16 percent Friday, lifted by US President Barack Obama's bigger than expected US$447 billion jobs plan.
At the close, the benchmark S&P/ASX 200 was 6.7 points stronger at 4,194.7.
In an address to Congress prior to the market opening in Sydney, Obama said the jobs plan would jolt the "stalled" economy as he seeks to tackle a 9.1 percent unemployment rate that has derailed the economic recovery.
Cameron Securities client adviser Adrian Leppinus said the market had held up well after the Dow Jones Industrial Average tumbled 119.05 points, or 1.04 percent, on Thursday.
"I guess most will be waiting now to see how the US market takes Obama's speech," he said.
IG Markets analyst Ben Potter added that Obama's address inspired some risk appetite.
"It's been a pretty encouraging response to President Obama's jobs creation plan. The headline number was better than expected as the market had been talking about a US$300 billion plan," he said.
"For the market to be holding gains on a Friday afternoon is reasonably impressive."
The Australian dollar also rallied on the news and was trading at 106.08 US cents late in the day, up from its 105.96 close on Thursday.
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