MARKET COMMENT: S&P/ASX 200 +0.4% Amid Bond Market Weakness

0152 GMT [Dow Jones] Australia's S&P/ASX 200 is up 0.4% at 5103 after hitting a fresh 4 1/2 year high of 5106.6 as the bond market remains weak ahead of the FOMC minutes, due later Wednesday. With domestic 10-year yields hitting a 9-month high of 3.61%, money continues to flow into banks, property trusts, consumer staples, health care. Standouts include the major banks, Woolworths (WOW.AU), Westfield (WDC.AU), Coca-Cola Amatil (CCL.AU), GPT (GPT.AU), Stockland (SGP.AU) and Goodman (GMG.AU), up 0.8%-2.4%. Woodside (WPL.AU) jumps 2.7% after its underlying profit rose 25% to US$2.06 billion, slightly above market expectations. Toll (TOL.AU) gains 4.4% after a positive outlook commentary. Suncorp (SUN.AU) slumped 4.3% as 1H results showed rising impaired loans, but IAG (IAG.AU) surged 3% as Suncorp's insurance margin jumped 19%. Aurizon (AZJ.AU) fell 6.5% after lowering its full-year guidance for coal haulage volumes. Miners including BHP (BHP.AU), Rio Tinto (RIO.AU) and Fortescue (FMG.AU) fell 0.6%-1.7% after BHP's interim results revealed a sharp rise in costs. BHP hit a 14-month high early Wednesday on its CEO succession plans. Michael McCarthy chief market strategist at CMC Markets in Sydney says, improving German investor data reinforces the theme of a recovering global economy causing weakness in bonds and strength equities. ([e-mail])

 
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