The Australian sharemarket rose yesterday as China's stronger-than-expected trade data fuelled hopes of an economic rebound for Australia's biggest trading partner.
Fortescue Metals added 2.3 per cent after China reported a $US31.6 billion ($29.9bn) trade surplus in December, well above the consensus of $US19.6bn. China's exports rose 14.1 per cent for the year versus the 4.6 per cent expected by the market, and imports gained 6 per cent against expectations of a 3.3 per cent lift.
The Australian benchmark S&P/ASX 200 closed up 0.3 per cent at 4723, reversing a 0.2 per cent fall after the trade figures. It rose 15 per cent in 2012, and climbed 9 per cent in a rally over the past seven weeks.
The value of shares traded was $3.6bn, below the 2012 daily average of $4.1bn.
Analysts said the China trade data was likely to boost global risk assets overnight.
"China has provided the biggest contribution to global economic growth in the past year," said CommSec chief economist Craig James.
"The trade data have been the main driver of sharemarkets in Asia today, and I expect to see investors rejoicing around the world. Clearly, our major trading partner doing well reflects positively on the Australian economy."
The Shanghai Composite was up 0.4 per cent late yesterday, while markets in Japan, Hong Kong, South Korea and Taiwan also improved.
"China's trade data was one of the major uncertainties restraining some commodity markets this week," Mr James said.
He added that the next thing to watch would be a European Central Bank meeting overnight.
"If it at least provides some lip-service to the fact that interest rates could go down, that would be a second tick for global markets," he said.
Financials, property trusts, consumer staples and consumer-discretionary stocks underpinned the rise in the sharemarket. ANZ Bank, Goodman Group, Wesfarmers and Crown advanced between 0.5 per cent and 1.6 per cent.
However, profit-taking continued to restrain some major stocks, with BHP Billiton declining 0.5 per cent amid doubts over the sustainability of an 80 per cent rise in spot iron ore since September. Iron ore prices consolidated overnight after hitting a 15-month high on Wednesday.
RBS Morgans analysts Tom Sartor and James Wilson said the underlying fundamentals suggested that iron ore prices had risen too high.
Australia's largest goldminer Newcrest fell to near six-month lows on the back of recent dips in the gold price. It dropped 46c, or 2.1 per cent, to $21.56.
CommSec market analyst Juliette Saly said it was encouraging to see insurance stocks hold up well, indicating property damage from recent bushfires had not been serious enough to worry investors.
IAG climbed 10c, or 2.1 per cent, to $4.86 and QBE Insurance improved 32c, or 2.8 per cent, to $11.79.
Mining contractor Macmahon Holdings gained half a cent to 28c after it emerged that India-owned Sembawang Australia had increased its offer to buy the company's construction business.
The spot price of gold in Sydney closed at $US1658.38 per fine ounce, down $US4.63 from Wednesday's local close of $US1663.01.