The ASX is close to an 11-week high today.
The S&P/ASX200 gained 56.20 points or 0.76% to 7,468.60, setting a new 50-day high. Over the last five days, the index has gained 1.74%, but is virtually unchanged over the last year to date.
Top-performing stocks were Polynovo Ltd (ASX:PNV) up 7.08% and Magellan Financial Group Ltd (ASX:MFG) up 7.07%.
Energy was down 0.68% and Materials down 0.21%, but leading the way was Information Technology up 3.43% and Consumer Discretionary which was 2.31% higher.
Let’s now see how the market reacts to tonight’s Federal budget and the expected cash splash for low and middle income earners.
“Tonight’s budget delivers for Australian families, for seniors, for small businesses with cost-of-living relief now in a temporary, targeted and responsible way,” Treasurer Josh Frydenberg said in Canberra on Tuesday.
He pitched the budget as a long-term economic plan providing skills, building more roads, funding national security, driving down the cost of energy and rolling out essential services.
Australia and NZ try to thwart China/Solomon Islands pact
Australia and New Zealand are attempting to stave off a security agreement between China and the Solomon Islands, however, Beijing says any attempt to stop the pact will be "doomed to fail".
Australian Prime Minister Scott Morrison spoke to Papua New Guinea and Fijian leaders to try to lure them to oppose the agreement.
The agreement between the Solomon Islands and China will give Chinese naval ships access to the Pacific Island nation, which played a pivotal role in World War II.
China’s foreign ministry says Australia and other "relevant countries" are behaving "self-importantly and condescendingly" and say the agreement with the Solomons is "beyond reproach".
“Normal law enforcement and security cooperation between China and Solomon Islands, two sovereign and independent countries, is consistent with international law and international practice,” China’s foreign ministry spokesman Wang Wenbin said in Beijing.
"Relevant countries should earnestly respect Solomon Islands’ sovereignty and its independent decisions instead of deciding what others should and should not do,” Mr Wang said.