Johannesburg - The JSE rallied on Tuesday as newfound optimism about the European sovereign debt crisis helped bolster confidence on the local bourse. Anglo American [JSE:AGL] and BHP Billiton [JSE:BIL], among other resources, led the market higher.
Sentiments improved and uncertainty eased after Japan said it planned buy euro-zone government bonds this month, a trader said. Global equities also rose strongly after the news.
At 17:00 local time, the JSE all share index was up 1.46%, with platinum surging 3.01%, resources rising 1.72% and gold miners gaining 1.63%.
Industrials firmed 1.39%, banks added 1.69% and financials inched up 1.09%.
The rand was trading at 6.85 to the dollar from 6.85 at the JSE's close on Monday. Gold was quoted at US$1 375.36 a troy ounce from US$1 369.50/oz at the JSE's previous close, while platinum was at $1 758.00/oz from $1 744/oz before.
Japan's announcement calmed market nerves and reduced uncertainty, the trader said.
Local manufacturing data, he said, also lifter the spirit.
Manufacturing production continued to improve in November, rising 4.6% year on year (y/y) in November from a 2.3% y/y rise in October, data released by Stats SA on Tuesday showed.
The seasonally adjusted manufacturing production for the three months ending in November, compared with the previous three months ending in August, decreased by 1.6%, mainly due to seven of the ten manufacturing divisions reporting negative growth rates over the period.
Dow Jones Newswires reported that US stocks climbed on Tuesday morning as investors' concerns about euro-zone debt eased after the European Central Bank stepped in to buy under-pressure euro-area government bonds for the second consecutive day.
The Dow Jones Industrial Average rose 51 points, or 0.4%, to 11 688.
Japanese Finance Minister Yoshihiko Noda said Tokyo may buy more than 20% of the securities issued by the European Financial Stability Facility in its initial round.