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Market Update

Australian Dollar Gains, Newcrest Announces Asset Write Down

Author: Marcus Jacob
Last Update: 7:52 AM ET July 24 2014

5:00 PM Sydney, Australia – Australian stocks and the Aussie dollar closed higher after a private survey showed a larger than expected expansion in manufacturing sector in China. Newcrest Mining Limited, the largest independent gold miner in Australia announced additional asset impairment.

Australian stocks opened higher and stayed in the positive zone in the session after a private estimate of China’s manufacturing sector showed an expansion.

The HSBC preliminary read on China’s manufacturing tracked by Purchasing Manager’s Index increased to 52 in June. Any reading above 50 indicates an expansion.

The Australia Bureau of Statistics reported consumer price index in second-quarter ending in June jumped 0.5% and yearly inflation rose 3%.

Australian dollar closed at 94.39 U.S. cents and stock trading turnover increased to 729 million shares worth $4.24 billion.

ASX 200 index rose 11.10 or 0.2% to 5,587.80 and the broader All Ordinaries gained 9.80 to 5,576.80.

Stocks in Review

Atlas Iron Limited climbed 3.5% to 59 cents after the iron ore producer lifted its outlook for operating earnings in the range of $240 million to $260 million.

The company added at the end of June quarter cash on hand was $265 million after investing $108 million in growth projects in last month.

Insurance Australia Group Limited jumped 2.1% to $6.17 after the insurer revised its full-year profit margin between 18% and 18.3% from earlier guidance of 14.5% to 16.5%.

Macquarie Group Limited declined 2.9% to $59.51 after the fund manager forecasted full-year profit in fiscal 2015 to be broadly in line with the previous year and securities business is expected to shrink in the current year.

Newcrest Mining Limited plunged 6.2% to $10.78 after the gold, copper and silver producer estimated to take pre-tax impairments in fiscal 2014 between $1.5 billion and $2.5 billion.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc