MELBOURNE - The Australian stock market closed higher in choppy trading on Thursday, as the resources sector strengthened on expectations that Chinese efforts to boost its economy would increase demand for minerals.
However, some disappointing building approvals and trade balance figures weighed upon the bourse.
At the 1615 AEDT close,
the benchmark S&P/ASX200 index was up 22.1 points, or 0.7 per cent, at 3,188.5, while the broader All Ordinaries index gained 22.9 points, or 0.73 per cent, to 3,148.8.
On the Sydney Futures Exchange, the March share price index futures contract was 16 points higher at 3,178 on a volume of 28,642 contracts.
Chinese Premier Wen Jiabao said on Thursday that government spending would rise 25 per cent this year in a bid to revitalise the slowing economy and achieve eight per cent growth.
City Index Australia markets strategist Alex Douglas said the materials sector was the main driver of the market on Thursday, with mining and energy stocks stronger.
"BHP (Billiton) has been firmer on the back of expectations that China will give things a boost," Mr Douglas said.
He said trading had been choppy as investors awaited details of China's economic stimulus package.
IG Markets institutional dealer Chris Weston said the Australian market opened strongly but fell away after disappointing figures on building approvals and a worse than expected trade balance.
In the resources sector, global miner BHP Billiton rose $1.20, or 4.43 per cent, to $28.31, and Rio Tinto gained $2.28, or 5.24 per cent, to $45.75.
Oil and gas producer Woodside Petroleum climbed 49 cents to $34.20, and Santos improved 20 cents to $14.68.
On Wall Street overnight, the Dow Jones Industrial Average index rose 149.82 points, or 2.23 per cent as an expected economic stimulus plan from China and new US efforts to ease home foreclosures helped mute the impact of weak economic data.
Among the major banks, National Australia Bank fell 43 cents to $16.77, Westpac found nine cents at $15.79, Commonwealth Bank picked up six cents at $27.33, and ANZ advanced 20 cents to $12.65.
In the gold sector, Lihir was off 31 cents at $3.00, Newmont eased two cents to $6.08 and Newcrest retreated 26 cents to $31.13.
The price of gold in Sydney at 1637 AEDT was US$912.35 per fine ounce, up 10 US cents on yesterday's close of $912.25.
Among media stocks, News Corp ascended 28 cents to $9.81 and its non-voting scrip jumped 22 cents to $8.60.
Consolidated Media lifted 4.5 cents to $1.98 and Fairfax was up three cents at 86.5 cents.
Retailer Woolworths retreated 50 cents to $26.00 and Wesfarmers, which owns Coles, was 32 cents richer at $17.00.
Telco Telstra dipped three cents to $3.34, and Optus owner Singapore Telecommunications fell seven cents to $2.51.
The top-traded stock by volume was Telstra, with 105.2 million shares worth $357.9 million changing hands.
Preliminary national turnover was 1.37 billion shares worth $3.84 billion, with 497 stocks up, 380 down and 280 unchanged.
- AAP
<i>Australian stocks:</i> Market closes slightly higher
MELBOURNE - The Australian stock market closed higher in choppy trading on Thursday, as the resources sector strengthened on expectations that Chinese efforts to boost its economy would increase demand for minerals.
However, some disappointing building approvals and trade balance figures weighed upon the bourse.
At the 1615 AEDT close,
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