MARKET COMMENT: S&P/ASX 200 Up 0.5% After Offshore Concerns Fade

0020 GMT [Dow Jones] Australia's S&P/ASX 200 is up 0.5% at 4989.7 after hitting an intraday high of 5005.6 early Tuesday as investors' recent fear of an escalating crisis over Cyprus receded. "The fact that we came through the weekend without further adverse developments in Cyprus is a positive for our market," says Angus Gluskie, managing director at White Funds Management. The local bourse fell 0.6% Thursday and remained closed for the Easter holidays until Tuesday. Offshore markets were slightly better supported, with the MSCI World Index rising 0.4% on Thursday before falling 0.5% on Monday. "Also, I think China's manufacturing PMI data point to ongoing recovery," Mr. Gluskie says. China's official manufacturing PMI rose to 50.9 in March but was a tad below the market consensus expectation of 51.0. Consumer staples and property trusts are strongest, with Woolworths (WOW.AU), Wesfarmers (WES.AU), Goodman Group (GMG.AU) and GPT (GPT.AU) up 1.3%-2.7%. Energy and health care stocks are also outperforming, with Woodside (WPL.AU), Origin (ORG.AU), CSL (CSL.AU) and Resmed (RMD.AU) up 1.3%-2.5%. The RBA's April interest rate decision and monetary policy statement are due at 0330 GMT. ([e-mail])

 
Contact us in Singapore. 65 64154 140; [e-mail] 
 
 

Subscribe to WSJ: http://online.wsj.com?mod=djnwires