Australian shares up

04 Feb, 2011

Australian stocks rose 0.5 percent on Thursday to reach the highest close in more than a week, with insurers and banks gaining after a major cyclone passed with less destruction than feared, miners gained and earnings results boosted select stocks. Tabcorp Holdings, Australia's largest gaming group, jumped 3 percent to A$7.11 while News Corp's Australian shares rose 3.4 percent to A$17.44 after both beat analysts' forecasts with their most recent earnings.
Banks gained, led by a 0.8 percent rise in ANZ Banking Group. Insurance Australia Group rose 3 percent and rival Suncorp gained 2.9 percent after Cyclone Yasi, one of the most powerful cyclones on record, slammed into Australia's north-east coast but so far wreaked less damage than feared. The benchmark S&P/ASX 200 index rose 24.1 points to 4,820.6, according to the latest data, its highest close since January 19. The index rose 0.9 percent on Wednesday.
New Zealand's NZX 50 index fell 0.1 percent to 3,349.9. Investors said the positive results from Tabcorp and News Corp boded well for the February earnings reporting period. "We're starting off the earnings season on the right foot here, domestically," said Chris Weston, institutional dealer at IG Markets. QBE Insurance, Australia's biggest insurance group, put its shares on trading halt on Thursday, saying it would update the market by early Friday on "acquisition activity."
A media report said QBE is in talks to buy US insurer Balboa from Bank of America. Balboa could fetch $1.5 billion to $2 billion, said an investment banker not involved in the deal. Top miner BHP Billiton rose 1.4 percent to A$46.32 as copper prices stayed close to $10,000 a tonne with supplies tight against strong demand.

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