ASX hits post-GFC high
The Australian sharemarket climbed to a post-GFC high as dividend hunters poured cash into the major banks ahead of upcoming earnings reports from three of the big four.
The S&P/ASX 200 index climbed 38.5 points, or 0.7 per cent, to 5517.8 points, but sentiment was capped by soft Chinese manufacturing data and a slump in the Australian dollar which raised risks for offshore investors.
The dollar fell US1� to US92.80� after March-quarter CPI inflation of 0.6 per cent fell well short of forecasts for a 0.8 per cent increase, 2.9 per cent on an annual basis.
Australian government 10-year yields dropped 6.1 points to 3.946 per cent as the CPI smashed forecasts for an interest rate rise later this year.
"On this occasion we note that the weakness was broad brush rather than concentrated. In effect, there were surprises across multiple categories that were consistent in direction - most coming in on the low side," Westpac economist Justin Smirk said.
If administrative charges such as utilities, health and education were removed the "non-traded index" there was a 0.2 per cent drop over the quarter, the first recorded fall since the March quarter of 2009.
The Shanghai composite index was off 0.4 per cent at the close of the ASX after the HSBC flash PMI index contracted for the fourth straight month with a reading of 48.3 points.
A report by Bloomberg that Chinese bank debts were soaring and that banks were hoarding cash also weighed on sentiment.
In Tokyo the Nikkei index was up 0.8 per cent.
Gold lost $US6 to $US1284 an ounce, copper was little changed at $US6670 a tonne and spot iron ore dropped 0.7 per cent to $US112.50 a tonne.
More to come…
