Johannesburg - The JSE shrugged off a soft start on Wall Street amid a slew of negative US data on Monday, to close out the day firmly in black territory.
The JSE was strong throughout the day having initially tracked Asian markets reacting positively to weekend comments by US Federal chair Ben Bernanke that he would intervene in the economy should "unexpected developments" further threaten US recovery.
By 17:00 local time local time the JSE all share index had added 1.51%. Resources were 1.96% higher, Platinum miners rose 2.26%, and Gold miners gained 0.53%. Banks added 1.63%, financials were 1.34% higher and industrials pocketed 1.18%.
The rand was bid at R7.32 to the dollar, from R7.29 at the JSE's close on Friday. Gold was quoted at $1 236.40 a troy ounce from $1 241.40/oz at the JSE's previous close, while platinum was at $1 531.50/oz from $1 532/oz before.
A trader said: "We saw a decent bounce today on the local market which reacted initially to Bernanke's comments on Friday. US stocks have dragged us back a bit amid some negative news in the US."
Dow Jones Newswires reports that stocks fell on Monday after data showed personal income remains sluggish while business activity in the Dallas area remains weak, adding to investors' worries over the health of the economy.
The Dow Jones Industrial Average declined 43 points, or 0.4%, to 10 106, in recent trading. With just two days left to the month, the measure is off more than 3% for August, as investors have grown increasingly worried over weak economic data despite strong corporate earnings and an uptick in deal activity.
"The mood is pretty negative," said Bruce Simon, chief investment officer at Ballentine Partners. "People are going to be looking toward the employment numbers on Friday to get a better gauge about whether the economy continues to flirt with this double dip problem."
Monday's economic data was less than encouraging. While consumer spending rose 0.4% last month, meeting economists' expectations, incomes increased less than expected, a sign the economic recovery remains fragile. In addition, business activity in the Dallas area came in weak.
In the US, investors are still digesting Federal Reserve Chairperson Ben Bernanke's Friday assertion that the central bank will do what it takes to prop up the economic recovery, which has shown signs of slowing in recent weeks.
"People are realising that the Fed on its own can't really return the economy to health," Simon said. "It's got to be through the private sector."
UK markets were closed on Monday for a Bank Holiday.
Asian markets traded mostly higher on Monday, but Japan's shares ended well off the day's highs as traders were disappointed by the Bank of Japan's new easing measures aimed at addressing the country's anaemic economic recovery and a high yen.
Japan's Nikkei Stock Average, which rose as much as 3.2% during the session, finished the day 1.8% higher, with the Hang Seng adding 0.68%.