The Australian share market closed at its highest level in nearly seven months as better-than-expected local and overseas economic data heartened investors and boosted resources stocks.
At the 1615 AEST close, the benchmark SP/ASX200 index had lifted 60.9 points, or 1.56 per cent, to 3955.3, while the broader All Ordinaries index advanced 61.7 points, or 1.59 per cent, to 3949.6 points.
The last time the local market had closed at those levels was in mid-November 2008.
The local bourse rose as a narrowing current account deficit and improving trade position raised expectations that the Australian economy had managed to avoid a contraction in the March quarter.
Building approvals rose for the third consecutive month as low interest rates and grants from the federal government enticed home buyers.
Resources stocks have been lifted by data released by China on Monday showing that China’s manufacturing activity had expanded in May for the third consecutive month.
In the US overnight, better-than-expected readings on manufacturing, consumer spending and construction spending boosted Wall Street.
The Reserve Bank of Australia, which kept interest rates unchanged on Tuesday, also said there was evidence the global
economy was stabilising and the turnaround was clearest in China. 
City Index markets strategist Alex Douglas said the positive data releases over the last few days were driving the market.
‘If we go back to yesterday, there was positive data from China.
‘That was backed up with some manufacturing data in the States overnight which was slightly firmer than anticipated,’ Mr Douglas said.
Locally, the building approvals figures were also positive.
‘So little bits of evidence like that of growth emerging – that’s helping to support the markets,’ Mr Douglas said.
In the resources sector, global miner BHP Billiton gained 96 cents to $36.70.
Rio Tinto jumped $2.67 to $69.00 after the company announced it had settled terms of iron ore contracts with many Asian customers.
Oil and gas producer Woodside Petroleum rose 88 cents to $44.90 as it said it planned to retain at least 50 per cent equity in the second and third stages of its Pluto liquefied natural gas (LNG) development at Karratha in Western Australia.
Santos firmed five cents to $14.90.
Among the major banks, Commonwealth Bank strengthened 17 cents to $36.33, Westpac surrendered 18 cents to $18.76, ANZ gave away 21 cents to $15.98, and National Australia Bank gained 28 cents to $22.80.
Investment bank Macquarie Group was up 91 cents at $36.30 as it said it was not aware of any reason or information not already announced that could have prompted a lift in its share price since late last week.
On Wall Street overnight, the Dow Jones Industrial Average index rose 221.11, or 2.6 per cent, to 8,721.44.
In the gold sector, Lihir slipped one cent to $3.30, Newmont lost 24 cents to $6.00, and Newcrest picked up 15 cents to $33.89.
The price of gold in Sydney at 1628 AEST was $US973.85 per fine ounce, down $US10.25 on Monday’s close of $US984.10.
Telco Telstra was off two cents at $3.07, and Optus-owner Singapore Telecommunications shed six cents to $2.50.
Retailer Woolworths ascended 60 cents to $26.00, and Wesfarmers, which owns Coles, was $1.09 heavier at $23.37.
In the media sector, News Corp was 25 cents richer at $14.68, and its non-voting stock improved 20 cents to $12.75.
Consolidated Media lifted three cents to $2.38, and Fairfax gained six cents to $1.26.
Among other stocks, automotive brakes supplier Pacifica Group was steady at 13.5 cents after it said the bankruptcy of car-making giant General Motors Corp in the United States was likely to hurt Pacifica’s earnings in 2009.
The top-traded stock by volume was property developer GPT group, with 74.74 million shares worth $36.4 million changing hands.
GPT was 1.5 cents lower at 48 cents.
Preliminary national turnover was 2.43 billion shares worth $5.85 billion, with 657 stocks up, 412 down and 324 unchanged.
Source www.bigpondnews.com
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