The Australian stock market was flat at noon, with gains among energy and resources companies offset by weakness in financial stocks.
All Ordinaries index had lost 1 point, to 4,945 points.
Australia's trade deficit was smaller than expected in November as China's demand for mineral resources continued to support the local commodities sector, economists say. The Australian balance of goods and services was a deficit of $1.70 billion in November, seasonally adjusted, from a revised deficit of $2.080 billion in October, figures released by the Australian Bureau of Statistics (ABS) on Thursday show.
It was smaller than the market forecast of a deficit of $1.8 billion for the month.
CMC Markets market analyst David Taylor said higher commodities prices had supported resources stocks in quiet morning trade, following a lacklustre lead from Wall Street. Miner Brockman Resources Ltd (BRM) has been granted a mining lease at Marillana in Western Australia by the Department of Mines and Petroleum.
The company says the granting of this mining lease means Brockman has taken a significant leap forward towards realising its objective of becoming the fourth largest iron ore producing company in Australia. Brockman has spent two years conducting field surveys and holding discussions and negotiations with the traditional landowners.
Chinas police investigation of four Rio Tinto (RIO)Group executives, including Australian Stern Hu, is scheduled to be completed next week, thats according to the Australian government and lawyers linked to the men. Hu, head of Rios iron ore business in China, and three Chinese colleagues were arrested in August for allegedly stealing secrets related to the steel industry. The arrest has strained ties between Australia and China.
The investigation period is due to be completed on January 11, whilst the trial is expected to take place no later than March 11 provided there are no further delays. Rio Tintos achieved a 2008 net profit of $5.3 billion. Stock markets in Asia traded in tight ranges Thursday, after Wall Street's uninspiring performance, though in Australia, consumer-related stocks surged on retail sales data.
Japan's Nikkei 225 was up 0.2%, South Korea's Kospi Composite was down 0.1%, Australia's S&P/ASX 200 was off 0.1% and New Zealand's NZX-50 was 0.3% higher. Dow Jones Industrial Average futures were one point lower in screen trade.
Spot gold was $1.60 lower at $1,136.30 per troy ounce from the New York close as a weak U.S. dollar saw more investments flow into commodities.
The Australian dollar surged against its U.S. counterpart after the retail sales data as it bolstered expectations for a rate hike from the Reserve Bank of Australia in February. It was at US$0.9260, from USD$0.9214 before the data.
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