Australian shares hit a two-and-a-half month high this morning as the weekend's strong Chinese economic data fuelled a regional rally.
At lunchtime the ASX 200 was up 58 points or 1.3% at 4618, the first time the index has traded above 4600 since June 22. The gains were fronted by I.T. +2%, financials +1.7% and metals & mining +1.6%.
The big banks were boosted by the Basel III meeting which introduced new reserve requirements for the world's banks overnight that left Australia's financial institutions strongly positioned for the future, according to analysts.
"Australian banks have been preparing for the new rules by building up surplus capital," Simon Burge, executive director at Ati Funds Management told Fairfax. "They will not need to raise more capital. On the contrary, in a couple of years when rules are clearer, they may be placed to return capital to shareholders in some form."
U.S. futures rallied as regional markets cheered data released on Saturday that underlined robust Chinese growth. Dow futures were recently 71 points or 0.7% stronger. Japan's Nikkei was up 1%, Shanghai 0.4% and Hong Kong's Hang Seng 1.5%.
Crude oil futures charged another 81 cents or 1.1% this morning to $77.26 a barrel. The spot gold price was $1 weaker at $1,245.70 an ounce. The Aussie dollar was buying 93.1 U.S. cents.
A regulation morning of bounce trading here delivered profits in NTU, TAM and GGG. Geez, it's good to be back trading.
