8:00 PM Sydney – Australian index gained more than 1% and the dollar traded below the U.S. dollar parity. Leighton Holdings, the global infrastructure group reiterated its annual earnings outlook between $400 million and $450 million. GrainCorp lifted its annual earnings estimate by as much as 11%.
Australian stocks rebounded tracking the gains in the world markets and the index jumped more than 1%. Resource stocks closed higher on the expectation of a broad political support from the wealthy eight nations and China.
The ASX 200 index gained 47.40 or 1.2% to 4,121 and All Ordinaries index increased 49.03 or 1.2% to 4,173.46.
In stock trading, turnover decreased to 1.67 billion shares worth $4.79 billion and 702 shares gained, 301 decreased and 330 closed unchanged.
The Australian dollar traded near the low of the year at 97.95 U.S. cents.
GrainCorp jumped 8.6% after the grain handler lifted full-year earnings outlook by as much as 11% on the expectation of higher earnings.
The Eastern Australian based grain handler estimated net income between $185 million and $205 million from the previous estimate between $165 million and $185 million.
The company also said net income ending in first half in March rose 52% to $133.7 million and paid 30 cents a share dividend in the period.
David Jones Limited fell 3 cents to $2.20, Harvey Norman Holdings closed up 1 cent to $1.96 and Woolworths increased 6 cents to $26.88.
Myer gained 3 cent to $2.17 and Kathmandu rose 2 cents to $1.22. Billabong International Limited added 3 cents to $2.15.
Miners and resources stocks closed higher after Chinese premier Wen Jiabao expressed support for pro-growth measures.
BHP Billiton advanced 22 cents to $32.32 and Rio Tinto closed up 94 cents to $56.89.
Lynas Corporation Limited inched up 2.5 cents to 92.5 cents and Iluka Resources soared 93 cents to $13.71. Newcrest Mining declined 26 cents to $25.24 and Kingsgate increased 12 cents to $5.17.
Oil Search Limited increased 15 cents to $6.87 and Santos Limited added 31 cents to $12.31. Orica surged 36 cents to $25.60.
Commonwealth Bank of Australia increased 27 cents to $49.91 and Bank of Queensland gained 19 cents to $6.49. ANZ gained 14 cents to $21.06. National Australia Bank advanced 31 cents to $23.91 and Westpac Banking Corporation added 14 cents to $20.75.
Leighton gained 4% after the construction company reaffirmed earnings for the full year between $400 million and $450 million.
Stockland closed up at 4 cents to $3.19, Leighton added 65 cents to $17.94 and Toll Holdings gained 18 cents to $4.45.
Qantas rose 4 cents to $1.47, Virgin Australia closed unchanged at 42 cents and Flight Centre advanced 29 cents to $18.70.
QR National increased 12 cent to $3.42.