Australian share prices jumped 1.5 percent to a fresh all-time high on Wednesday after another record performance on Wall Street overnight lifted the market, dealers said. They said the central bank's decision to leave interest on hold at 6.25 percent added to the momentum driven by Wall Street where stocks got a solid boost from better-than-expected US manufacturing data.
The benchmark SP/ASX 200 closed up 91.9 points at 6,237.7, beating the previous record set on April 18. The All Ordinaries also topped its previous best, adding 84.3 points to close at 6,224.5. Turnover was 1.62 billion shares worth 6.47 billion dollars (5.4 billion US), with 718 stocks up, 488 down and 401 unchanged.
"The data has eased some of the concerns that the US might be heading for a recession and, of course, the US economy growing is very positive for the Asia region and that's why it has been embraced Wednesday," CommSec Chief Economist Craig James said.
James said the local market made its best one-day gain since mid-April following a period of consolidation. "I think investors are also concluding that the big picture environment remains pretty positive, with interest rates on hold here domestically and the economy in good shape plus the fact that the US economy looks as though it still has room to grow," James said.
In the resources sector, BHP Billiton climbed 0.61 dollars or 2.09 percent to finish at 29.76 dollars and Rio Tinto rose 1.60 or 1.79 percent to 82.75. Among the banks, National Australia Bank rose 0.86 to 43.81, Commonwealth Bank climbed 0.88 to a record close of 53.64, ANZ jumped 0.39 to 30.79 and Westpac advanced 0.34 to 27.54 Telstra gained 0.09 to 4.85 and Optus-owner SingTel added 0.01 to 2.70.
Qantas rose 0.04 to 5.34 as Friday's expiry for a private equity consortium's take-over bid for the airline loomed. Discount rival Virgin Blue was up 0.01 at 2.70.
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