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JSE perkier on Asian economic data

Sep 01 2010 10:01 I-Net Bridge

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Johannesburg - The JSE opened stronger on Wednesday, as positive global sentiment filtered through to the local bourse.

High commodity prices also lifted the mood in the morning session, but the market will take more direction when the US releases economic data later today, Mpho Mojalefa, a trader at BJM Private Client Services, said.

By 09:20 local time the JSE all share index had gained 0.42%, with resources 0.60% higher and platinum miners rising 1.28%. But gold miners dropped 0.79%. Banks rose 0.21%, financials slid 0.20%, and industrials edged up 0.29%.

The rand was bid at R7.36 to the dollar, unchanged from the JSE's close on Tuesday. Gold was quoted at $1 248.73 a troy ounce from $1 246.85/oz at the JSE's previous close, while platinum was at $1 524.50/oz from $1 521.50/oz before.

Mojalefa said good economic data from Asia helped shore up the local market.

China's official Purchasing Managers Index rose to 51.7 in August from 51.2 in July, while the Australian Bureau of Statistics showed the country's average measure of GDP rose a better-than-expected 1.2% in the second quarter of 2010 from the first quarter.

"We are taking heart from this," Mojalefa said, referring to the latest positive economic indicators from Asia.

High commodity prices, which boosted resource counters, also lent support, he said. 

Dow Jones Newswires reports that Asian stock markets were moving higher on Wednesday, with solid economic data from China and Australia helping investors overcome some early jitters over the health of the global economic recovery.

Japan's Nikkei Stock Average closed 1.17% firmer on Wednesday, and Hong Kong's Hang Seng Index was last 0.42% higher.

On Tuesday, the Dow Jones Industrial Average edged up five points to 10 014.72.

European stocks opened higher on Wednesday, following positive US and Asian sessions, as upbeat data from China and Australia help to restore confidence in the global economic recovery.

In London, the FTSE 100 index was 0.54% up. 

 
 
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