Australia: Shares end higher on strong Chinese data

[BENGALURU] Australian stocks rose on Monday (Nov 15), with healthcare and technology sectors leading the gains, and as a slew of strong economic data from China aided risk appetite and eased the blow from a surprisingly strong US inflation data last week.

The S&P/ASX 200 index rose 0.36 per cent to close at 7,470.1 points. The benchmark ended 0.8 per cent higher last Friday (Nov 12).

Industrial output and retail sales in China, Australia's top trading partner, grew at a surprisingly faster pace in October and beat expectations, with output growing 3.5 per cent from a 3.1 per cent increase in September, and retail sales rising 4.9 per cent year-on-year.

"The rebound in China's industrial production and retail sales in October calmed concerns that the economy was losing momentum, even as a decline in new home prices highlighted pressures on the property market," Brad Smoling, managing director at Smoling Stockbroking said.

"US inflation reports from earlier last week had intensified concerns that the current spike in prices may take longer to cool, so the market is very happy with the China numbers today."

Healthcare stocks jumped 1.2 per cent, with heavyweight Resmed Inc adding 5.7 per cent to hit its highest in more than two weeks, while biotech major CSL Ltd rose up to 1.3 per cent.

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign Up

Sign Up

Australia-listed drug developer Mesoblast jumped 14.7 per cent and was the top gainer on the local bourse after releasing a positive phase three trial result of its stroke medicine.

Technology stocks rose 1.03 per cent, taking cues from Wall Street where market-leading growth shares pushed the tech-heavy Nasdaq Composite index higher.

Data centre operator NEXTDC Ltd led gains on the sub-index, climbing 4.8 per cent, followed by network operator Megaport Ltd, gaining 4.3 per cent.

Financials were flat after falling 0.5 per cent in mid-day trade as falling interest rates and inflation fears kept gains in check.

Australia's No 2 lender National Australia Bank dropped 1.5 per cent as its shares traded ex-dividend, while, the country's largest lender Commonwealth Bank gave up as much as 0.7 per cent.

New Zealand's benchmark S&P/NZX 50 index rose 0.4 per cent to finish the session at 12,964.5 points.

REUTERS