THE stock market continued to climb throughout this morning as news from China reassured investors, with financials stocks and the dollar strong.
By noon (AEST), the benchmark S&P/ASX200 index was up 80.2 points, or 1.83 per cent, at 4459.4 points, while the broader All Ordinaries index gained 79.6 points, or 1.81 per cent, to 4478.7 points.
On the Sydney Futures Exchange, the June share price index futures contract was up 80 points at 4462 points, with 20,459 contracts traded.
Macquarie Private wealth analyst Helen spencer said that reports that China would not cut its holdings of eurozone debt had boosted markets, especially financial stocks.
"The biggest winners today are the financials," Ms Spencer said.
"(It's been) a remarkable turnaround for the dollar (with) strong performances across the board."
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The dollar was trading at $US0.8525 at noon (AEST), up from $US0.8357 at yesterday's close.
Among the banks, Commonwealth was up $1.50, or 2.96 per cent, at $52.23, Westpac was 76c higher, by 3.35 per cent, at $23.48, NAB had lifted 89c, or 3.69 per cent, to $25.04, and ANZ increased 56c, or 2.54 per cent, to $22.65.
AMP gained 17c, or 3.13 per cent, to $5.60.
By noon (AEST), mining giant BHP Billiton was 30c higher, by 0.77 per cent, at $39.15, after it says it confirmed the formation of the joint venture for its Indonesian Coal Project (ICP) with a subsidiary of PT Adaro Energy TBK (Adaro) following the completion of Government approvals.
Rival Rio Tinto had gained 95c, or 1.42 per cent, to $67.98.
Boral was a standout, gaining 22c, or 4.08 per cent, to $5.61.
By noon (AEST), the spot price of gold in Sydney was $US1209.00 per fine ounce, down $US3.86 on yesterday's closing price of $USS1212.86.
In the industrials by 12.15pm (AEST), Virgin Blue lost 12.5c, or 29.07 per cent, to 30.5c, after the airline lowered full year profit guidance by up to three quarters.
Qantas was up 1c at $2.43.
Transport group Asciano lost 4c, or 2.47 per cent, to $1.58.
In other news today, shares in building materials maker James Hardie Industries SE rose 29c, or 4.08 per cent, to $7.40 after it says the cost of moving domicile to Ireland would be $US63 million ($74 million), around the mid-point of previous estimates.
Santos gained 20c, or 1.63 per cent, to $12.47 after, together with Malaysian partner PETRONAS, it received approval from the Queensland government to go ahead with the $7.7 billion Gladstone liquified natural gas project.
Fisher & Paykel Appliances jumped one cent, or 2.22 per cent, to 46c, after the whitegoods maker reported a full year loss of $NZ83.3 million ($67.39 million), but said the appliances business had recovered in the second half.
Insurer and fund manager Tower Ltd gained 5c, or 3.5 per cent, to $1.48 after declaring its first interim dividend since 2002.
Virgin Blue was the most traded stock by volume by 12.21pm (AEST), with 160.1 million shares changing hands at a total value of $50.9 million, after the airline lowered full year profit guidance by up to three quarters.
Its stock fell 13c, or 30.23 per cent, to 30c.
National turnover at 12.29pm (AEST) was 1.272 billion shares, worth $5.251 billion, with 727 stocks up, 214 down, and 270 unchanged.
Stocks lower at noonDow builds on its gains
