PERTH - The Australian share market closed strongly in the black, driven by gold stocks after precious metal's price surged to a record high overnight, and as investors viewed Tuesday's interest rate rise as a positive sign for the economy.
The benchmark S&P/ASX200 index was up 104.1 points, or 2.27
per cent, at 4695.7 points, while the broader All Ordinaries index gained 98.6 points, or 2.14 per cent, to 4695.8 points.
On the Sydney Futures Exchange at 1621 AEDT, the December share price index contract was 108 points higher at 4709 points on a volume of 28,479 contracts.
IG Markets research analyst Ben Potter said the materials sector led the gains, supported by banking stocks.
"The materials sector is now looking to resume its leadership role as a declining US dollar has seen money flow back into commodities," Mr Potter said.
"Investors realise that yesterday's rate rise is a vote of confidence in the strength of the domestic economy and our biggest Asian trading partners."
Among major gold stocks, Newcrest was up $2.22, or 6.74 per cent, at $35.15, Newmont jumped 22 cents, or 4.44 per cent, to $5.18, Lihir advanced 17 cents, or 5.72 per cent, to $3.14 and AngloGold Ashanti was 95 cents, or 10.5 per cent, higher at $10.00.
Smaller gold miners were also stronger.
China-focused Sino Gold put on 47 cents, or 6.91 per cent, to $7.27, St Barbara lifted 2.5 cents, or 8.2 per cent, to 33 cents, Avoca Resources added five cents, or 3.23 per cent, $1.60 and Dioro Exploration inched two cents, or 2.53 per cent, higher to 81 cents.
The spot price of gold in Sydney at 1622 AEDT was US$1039.40 per fine ounce, up US$18.27 on Tuesday's closing price of US$1021.13.
During overnight trading on Tuesday (AEDT) spot gold reached a record price of US$1039.70 per fine ounce.
Mining giant BHP Billiton was up $1.16, or 3.17 per cent, to $37.81.
BHP Billiton says the haulage system at its Olympic Dam uranium, gold, copper and silver mine in South Australia has been damaged in a mechanical failure.
Rio Tinto rose $3.02, or 5.23 per cent, to $60.75 after it announced its first major investment in China since the Stern Hu espionage affair disrupted its dealings with the nation.
Rio Tinto subsidiary, Alcan Engineered & Automotive Solutions, had signed an agreement with Changchun Engley Automobile Parts Co Ltd.
In other headlines on Wednesday, coke producer and coal explorer Rocklands Richfield received a second indicative takeover proposal from an Indian firm.
Shares in Rocklands were up six cents, or 17.14 per cent, at 41 cents.
The big four banks were higher.
Commonwealth Bank found $1.80 to $51.30, ANZ appreciated 55 cents to $23.85, NAB was up 93 cents to $30.02, and Westpac was 33 cents stronger at $25.51.
Oil stocks were also higher.
Woodside lifted nine cents to $50.99, Oil Search gained eight cents to $6.39 and Santos found 18 cents to $15.25.
Among retail stocks, Coles owner Wesfarmers put on 36 cents to $26.10, rival Woolworths inched four cents higher to $29.21, Harvey Norman jumped 13 cents to $4.26 and JB Hi-Fi strengthened four cents to $18.80.
The most traded stock by volume was Latin America-focused gold explorer Laguna Resources, with 224.92 million shares worth $4.26 million changing hands.
Laguna Resources shares were up 0.8 cents, or 66.67 per cent, to two cents.
Preliminary market turnover was 3.09 billion shares worth $5.07 billion, with 763 stocks up, 356 down and 329 steady.
- AAP
Aussie market closes over 2pc up
PERTH - The Australian share market closed strongly in the black, driven by gold stocks after precious metal's price surged to a record high overnight, and as investors viewed Tuesday's interest rate rise as a positive sign for the economy.
The benchmark S&P/ASX200 index was up 104.1 points, or 2.27
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