The Australian share market has closed higher, led by mining and energy stocks, as investors took confidence from offshore markets ahead of the start of the local reporting season.
The benchmark S&P/ASX200 index finished up 0.31 per cent at 5,720.6 points.
ASR Wealth Advisers client adviser Gary Huxtable said resources stocks had a solid session, and there was broad-based buying across the board.
“It appears to be somewhat globally driven,” Mr Huxtable said.
“If you have a look at markets across Asia, they’re performing well apart from Japan, and US futures are up as well.”
Mr Huxtable said, however, that trading had drifted lower late in the afternoon, which suggested that investors were cautious about holding onto gains.
Investors are waiting for the release of the company earnings season, which starts on Tuesday with Seven West Media’s full-year results but gains momentum from mid-August.
Mr Huxtable said manufacturing data out of China on Monday had little impact on the Australian market.
China’s official manufacturing Purchasing Managers’ Index for the month of July came in at 51.4 points — just shy of expectations of 51.6 points but above the 50 point mark indicating expansion.
Energy stocks lifted as oil prices rose to an eight-week high, after a bigger-than-expected dip in US output tightened the market, and the threat of sanctions against oil-producing Venezuela re-emerged.
Origin Energy added six cents, or 0.9 per cent, to $6.92 as it reported a 40 per cent lift in full-year production and more than doubled revenue,
Woodside Petroleum gained 1.1 per cent to $29.17, and Santos improved 0.6 per cent to $3.39.
Among the major miners, BHP Billiton, Rio Tinto and Fortescue Metals all advanced in the wake of a firmer iron ore price.
The major banks – ANZ, Westpac, National Australia Bank and Commonwealth Bank – were softer, losing between 0.04 per cent and 0.2 per cent.
Hearing implant firm Cochlear eased $2.32, or 1.6 per cent, to $142.85 as the company announced its chief executive, Chris Smith, will retire in January and hand over the reins to chief operating officer Dig Howitt.
Wind farm operator Infigen Energy was up two per cent to 77 cents after announcing that the record low wind generation suffered in its fourth quarter – flagged in June – had pushed down quarterly revenue by 36 per cent.
Biotech Sirtex Medical nudged up one cent to $16.09.
Sirtex is facing two possible shareholder class actions over allegations that the company engaged in misleading and deceptive conduct in relation to missed sales forecasts for 2016/17 that sparked a share price plunge.
Meanwhile, the Australian dollar looks comfortable at near-two-year highs against its US counterpart.
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