By Robb M. Stewart
MELBOURNE--Australian shares bounced back from recent declines
with a rally that put the market at odds with weakness in much of
Asia Wednesday, buoyed by energy companies and retailers.
"The talking point on the floor today has been firmly around the
outperformance of the Australian market," said Chris Weston, chief
market strategist at IG in Melbourne.
A weaker lead from U.S. markets overnight weighed on most Asian
markets as investors continue to fret about when the Federal
Reserve will start to withdraw stimulus measures and the risk that
lawmakers won't be able to agree a budget deal to prevent a
government shutdown next week.
In contrast, Australian equities showed broad-based gains.
The S&P/ASX 200 finished 0.8% higher at 5275.9, in sight of
the five-year high of 5300.1 hit during trading last Thursday. The
market had declined the previous three days.
Australia's neighbor across the Tasman Sea also pushed higher,
with New Zealand's NZX-50 closing up 1.2% at 4764.723, boosted by
retailer Kathmandu, following solid earnings results.
Mr. Weston said there was no clear trigger for the ASX's rally,
although upmarket retailer David Jones pleased investors with
earnings that showed improved momentum in the second half of the
year. Consumer confidence has been relatively subdued despite a
series of interest-rate cuts, and investors are looking for signs
that spending will pick up at the end of the year.
David Jones ended the day up 4.9%, while rival retailer Myer
rose 0.8%.
The country's biggest banks resumed their run higher, with
National Australia Bank shares rising 2% to their highest level
since early 2008. ANZ climbed 1.4% and Westpac rose 1.1%.
Mr. Weston said that falling real interest rates, with the
Australian 10-year bond declining two basis points to 3.87%, may
have contributed to the lift in high-yielding banks.
Michael McCarthy, chief market strategist at CMC Markets in
Sydney, said five days of oil price falls had some local traders
speculating on a bounce, helping energy shares such as Santos,
which rose 1.5%, and Woodside Petroleum, which gained 0.7%.
Australian gold producers also advanced, lifted by a modest rise
in the bullion price. Evolution Mining ended up 6.7% and Kingrose
Mining gained 6.4%. Larger Newcrest Mining added 0.3%.
Market heavyweight BHP Billiton climbed 0.4% and fellow miners
Rio Tinto rose 0.5% and Fortescue Metals advanced 3%.
Write to Robb M. Stewart at robb.stewart@wsj.com
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