PERTH: The Australian sharemarket has defied disappointing September quarter capital expenditure figures, improving in the morning session with financial stocks leading the gains.
At 12.05pm (AEDT), the benchmark S & P/ASX200 index was up 46.5 points, or 0.9 per cent, at 5240.2, while the broader All Ordinaries index gained 43.9 points, or 0.84 per cent, to 5289.1.
The Australian Bureau of Statistics reported a 9.2 per cent fall in private capital expenditure in the September quarter, which followed June’s 4 per cent decline.
But IG chief market strategist Chris Weston said the equities market had been more interested in the fourth estimate of spending intentions, which improved 4 per cent, in line with traders’ expectations.
Still, the Australian dollar fell on the data, released at 11.30am (AEDT), slipping a quarter of a US cent to US72.26c in the minutes after the print.
The benchmark’s gains defied soggy leads from overseas, although materials stocks remained in the red after a 1.4 per cent slide in copper, a 0.3 per cent decline in nickel and no improvement on iron ore’s 10-year low.
After losing 0.8 per cent yesterday, financial stocks were leading the gains, more than 1 per cent stronger at noon after global ratings agency Fitch said regulatory intervention this year had improved mortgage underwriting in the local market, which could ultimately prove positive for asset quality.