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Johannesburg - The JSE added 725 points on Wednesday in line with global markets and pushed by better than expected PMI data in China, the US and Europe, while Australian GDP data boosted local resources stocks.
A local dealer noted that the JSE had gained more than 1,000 points over the past three days.
By 17:00 local time the JSE all share index had risen 2.66%, with resources 3.16% higher and platinum miners gaining 4.72%. Gold miners however, declined 2.3%. Banks rose 2.86%, financials were up 2.26%, and industrials firmed 2.4%.
The rand was bid at 7.28 to the dollar from 7.36 at the JSE's close on Tuesday. Gold was quoted at $1 245.54 a troy ounce from $1 246.85/oz at the JSE's previous close, while platinum was at $1 533.50/oz from $1 521.50/oz before.
A trader said: "The local bourse has reacted to positive PMI data, which came out much better than anticipated. The final push today came from US PMI data, while players chose to ignore weaker jobs data.
"The latest data suggests that a talked about 'double-dip' is not on the cards as was feared.
"The Australian economy also revealed encouraging growth which supports our resource led economy, and Anglo and Billiton reacted accordingly adding 4% on the day."
Dow Jones Newswires reports that Investors sent the stock market sharply higher on Wednesday, as strong manufacturing data helped erase gloomy jobs data to kick off September on a bullish note.
The Dow Jones Industrial Average surged 220 points, or 2.2%, at 10 234 in recent trading.
The strong start to the morning follows a dismal month that saw the Dow drop 4.3%, its worst August in nearly a decade.
It comes after US manufacturing activity expanded in August for the 13th straight month, with the ISM manufacturing PMI defying expectations to rise to 56.3 from 55.5 in July. The encouraging numbers were fuelled by strong employment and production data.
"The fear has been that manufacturing would let us down, and that's where some of this erroneous double dip stuff came from. These numbers show we're on track--not very fast, but back to where we were before the August malaise," said Jerry Webman, chief economist and senior investment officer with OppenheimerFunds.
It also comes in spite of a deflating jobs report, which showed private-sector employment falling by a seasonally-adjusted 10 000 jobs in August, a surprise contraction that is the first in six months. Economists had been expecting a gain of 17 000 private-sector jobs.
Asian shares posted gains overnight, buoyed by encouraging manufacturing data from China and better-than-expected growth in Australia, which allayed some near-term worries about the global economy.
Japan's Nikkei Stock Average closed 1.17% firmer on Wednesday, and Hong Kong's Hang Seng Index ended 0.43% higher.
On Wednesday, investors were also looking for manufacturing and construction spending data. In the early afternoon, Richard Fisher, president of the Federal Reserve Bank of Dallas, is scheduled to speak on the economy. Car-sales data for August will also be reported during the session.
A local dealer noted that the JSE had gained more than 1,000 points over the past three days.
By 17:00 local time the JSE all share index had risen 2.66%, with resources 3.16% higher and platinum miners gaining 4.72%. Gold miners however, declined 2.3%. Banks rose 2.86%, financials were up 2.26%, and industrials firmed 2.4%.
The rand was bid at 7.28 to the dollar from 7.36 at the JSE's close on Tuesday. Gold was quoted at $1 245.54 a troy ounce from $1 246.85/oz at the JSE's previous close, while platinum was at $1 533.50/oz from $1 521.50/oz before.
A trader said: "The local bourse has reacted to positive PMI data, which came out much better than anticipated. The final push today came from US PMI data, while players chose to ignore weaker jobs data.
"The latest data suggests that a talked about 'double-dip' is not on the cards as was feared.
"The Australian economy also revealed encouraging growth which supports our resource led economy, and Anglo and Billiton reacted accordingly adding 4% on the day."
Dow Jones Newswires reports that Investors sent the stock market sharply higher on Wednesday, as strong manufacturing data helped erase gloomy jobs data to kick off September on a bullish note.
The Dow Jones Industrial Average surged 220 points, or 2.2%, at 10 234 in recent trading.
The strong start to the morning follows a dismal month that saw the Dow drop 4.3%, its worst August in nearly a decade.
It comes after US manufacturing activity expanded in August for the 13th straight month, with the ISM manufacturing PMI defying expectations to rise to 56.3 from 55.5 in July. The encouraging numbers were fuelled by strong employment and production data.
"The fear has been that manufacturing would let us down, and that's where some of this erroneous double dip stuff came from. These numbers show we're on track--not very fast, but back to where we were before the August malaise," said Jerry Webman, chief economist and senior investment officer with OppenheimerFunds.
It also comes in spite of a deflating jobs report, which showed private-sector employment falling by a seasonally-adjusted 10 000 jobs in August, a surprise contraction that is the first in six months. Economists had been expecting a gain of 17 000 private-sector jobs.
Asian shares posted gains overnight, buoyed by encouraging manufacturing data from China and better-than-expected growth in Australia, which allayed some near-term worries about the global economy.
Japan's Nikkei Stock Average closed 1.17% firmer on Wednesday, and Hong Kong's Hang Seng Index ended 0.43% higher.
On Wednesday, investors were also looking for manufacturing and construction spending data. In the early afternoon, Richard Fisher, president of the Federal Reserve Bank of Dallas, is scheduled to speak on the economy. Car-sales data for August will also be reported during the session.
