ASX rises to seven-month high despite weaker China GDP

Australian stocks ended Monday’s trading day on a seven-month high, despite weaker than expected figures coming out of China.

Australian shares have ended the local session in positive territory. Picture: NCA NewsWire/Bianca De Marchi

Stocks ended Monday’s trading day higher, despite concerns that challenging economic data out of China could dent the demand for major Australian industrials.

The benchmark S&P/ASX 200 ended the session up 0.85 per cent, or 52.6 points, to 6229.4, the highest close for index in seven months.

The broader All Ordinaries index rose 0.8 per cent or 50.6 points to 6435.6, while the Australian dollar slipped from a two-day high of 71.08 US cents to 70.89 US cents.

China’s third quarter gross domestic product (GDP) rose 4.9 per cent compared to last year, well below the market consensus which forecast a 5.5 per cent expansion.

China’s third quarter GDP was lower than expected. Picture: STR/AFP

NAB senior economist Gerard Burg said China’s recovery was industry-led, but consumer consumption was improving.

“We continue to anticipate a gradual recovery in China’s growth,” he said.

“Key questions remain however, including the ability of consumers to replace industry as the key engine for growth in the near term, as well as international relations — with China not yet meeting targets under the Phase One trade deal with the United States.”

Infrastructure group CIMIC had the largest daily gain, sparked by the company announcing it would sell half of its subsidiary Thiess. Its shares rose 8.2 per cent to $22.59 each.

Investigations into money laundering at Crown Melbourne by AUSTRAC caused Crown Resorts share price performance to plummet, with listed stock in the James Packer-backed casino tumbling 8.2 per cent to $8.25 per share.

AUSTRAC has launched an investigation into money laundering at Crown Casino. Picture: NCA NewsWire/Jeremy Piper

Commonwealth Bank closed the session up 1.1 per cent to $70.01 per share, while Westpac stock lifted 0.6 per cent to $18.78 per share.

NAB rose 0.9 per cent to $19.40 and ANZ shares ended up 1 per cent to $19.51 each.

Major miners ended the day in positive territory, with Rio Tinto ending the session up 0.1 per cent to $95.56 per share, while shares in BHP rose 0.7 per cent to $36.50 each.

Qantas gained 2.6 per cent to $4.32 per share, while Telstra increased its share price 0.35 per cent to $2.85 each.

Wesfarmers gained 0.02 per cent to $48.21 and Woolworths rose 0.5 per cent to $39.40 per share.

Medical company CSL saw its share price lift 1.7 per cent to $304.13 each.

Originally published as ASX rises to seven-month high despite weaker China GDP