Australian stocks surge after central bank updates

The sharemarket remained in positive territory as investors reacted to key central bank decisions.

The market has welcomed US Fed, Bank of Japan updates.

The sharemarket remained in positive territory at noon as investors reacted to key central bank decisions to leave interest rates unchanged.

At 12.08pm (AEST) the benchmark S & P/ASX 200 index was up 42.7 points, or 0.8 per cent, at 5,382.3 points. The broader All Ordinaries index was up 43.3 points, or 0.8 per cent, at 5,472.7 points.

The US Federal Reserve left interest rates unchanged overnight, while the Bank of Japan yesterday announced several changes to its monetary policy, but no change in its negative interest rates.

Mining and energy stocks were among the best performers on the local market. Rio Tinto, BHP Billiton and Fortescue Metals were all up by between three and five per cent, while Woodside Petroleum, Santos and Origin Energy were between two and three per cent higher.

The financial sector’s gains were more modest, with all four major banks trading around 0.5 per cent higher.

Bucking the trend, Premier Investments was down 4.4 per cent despite the Solomon Lew-controlled retail group lifting full year profit by 18 per cent. Electronics retailer JB Hi-Fi was also down, dropping 2.3 per cent.