Australian shares have closed 1.1% stronger today on strong buying in resources-focused stocks, particularly iron ore players, following the release of better-than-expected trade data out of China. Dow Futures were 1 point lower, while the Shanghai Composite Index jumped 2 points, or 0.1%.
Investors moved away from resources-focused stocks and towards high yield stocks, such as telecommunications giant Telstra, on the ASX today following softer manufacturing data out of China and some profit taking. Dow Futures are up 3 points while the Shanghai Composite was still closed for a holiday.
The Australian market notched a seven week high today on strong buying in the big four banks with investors hopeful of further increases in dividend growth. Dow Futures were trading 14 points higher, while the Shanghai Composite Index remained closed for the Labour Day long weekend.
Australian banks witnessed increased buying today as hopes of further interest rate cuts were heightened on lower-than-expected inflation. Banks took Australian shares to highest close in 5 weeks. Dow Futures rose 31 points and the Shanghai Composite Index added 28.4 points, or 1.3%.