MARKET COMMENT: S&P/ASX 200 +0.9% As Offshore Risks Fade; NAB Leads

0001 GMT [Dow Jones] Australia's S&P/ASX 200 is up 0.9% at 5119.1 on broad-based gains after hitting a 4 1/2 year high of 5124.6 in response to an abatement of offshore risks overnight. NAB (NAB.AU) leads banks with a 2.4% rise on reports of plans to cut A$900 million in costs over five years. Nufarm (NUF.AU) bounces 10% on broker upgrades. Among other standouts, Woodside (WPL.AU), News Corp. (NWS.AU), Brambles (BXB.AU), Macquarie (MQG.AU) and Amcor (AMC.AU) are up 1.3%-2.1%. BHP (BHP.AU) is up 1.1%, but miners are undershooting offshore peers' gains. Fortescue (FMG.AU) is down 0.9% after reversing a 2% rise, with spot iron ore down 2.4% overnight. "The market has some blue sky above the previous high of 5112.5," says IG market strategist Stan Shamu. "While the Dow Jones Industrial Average has set record highs, we are around 34% from our record high of 6851." Mr. Shamu says improving confidence in China's ability to rebalance its economy and sustain a high level of economic growth is the key factor for Australia. "China has reinforced the fact they are focused on a 7.5% GDP target by flagging a 10% rise in fiscal spending this year." The market awaits domestic 4Q GDP data at 0030 GMT. ([e-mail])

 
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