Public holiday trade helps Australian share market to strong close

The Australian share market has surged today, despite lighter trading volumes because of the Labour day public holiday in some states and territories.

Local stocks got a strong lead from Wall Street, with the main US markets booking solid gains last Friday.

US investors appear hopeful that the latest weaker-than-expected jobs data could delay a long-awaited interest rate rise.

The All Ordinaries Index has closed 1.8 per cent higher at 5,184 and the ASX 200 has added 1.9 per cent to 5,150.

Mining shares have led the day’s big gains with BHP jumping over 4 per cent to $23.50 and Rio Tinto climbing 2.2 per cent to $49.81.

The gold miners also gained some shine ? Newcrest has surged more than 9 per cent to $13.80.

Energy shares have also posted strong gains with Woodside Petroleum gaining 3 per cent to $30.45.

In economic news, job advertisements have surged by 3.9 per cent in September, following a 1.3 per cent rise in August.

Job ads are now 12.8 per cent higher than a year ago and economists at ANZ are expecting the labour market to remain healthy going into next year.

Elsewhere, a closely-watched private sector measure of inflation shows consumer prices edged higher last month, after a long period of stagnation.

The TD Securities/Melbourne Institute Monthly Inflation Gauge rose by 0.3 per cent in September, after a rise of just 0.1 per cent in August.

It has taken the survey’s annual rate of inflation to 1.9 per cent, which is below the Reserve Bank’s target range of 2 to 3 per cent.

Around 5:00pm AEST the Australian dollar was buying 70.61 US cents, 84.62 Japanese yen, 62.9 eurocents, 46.44 British pence and $1.09 in New Zealand.

West Texas crude oil was steady at $US45.49 a barrel, while the price of a barrel of Tapis has eased to $US48.74.

Spot gold edged down to $US1,137.36 an ounce.

Source: ABC News