7:30 PM Sydney – Australian stocks closed at a new 15-month high after sentiment recovered in the mining sector. European leaders negotiated an agreement to finalize the legislation to offer banking aid to Spain. National Australia Bank declined after it reported flat earnings expectations in the fourth quarter.
Australian markets closed higher for the fourth day in a row after the gains in resource stocks outweighed the decline in banks.
The benchmark index sustained gains on the recovering optimism that global outlook is stabilizing and European leaders negotiated well into the late night to establish single banking supervisory authority.
Early Friday, the EU leaders said in a statement that they have agreed to finalize the legislation for the Spanish banking aid by the end of the year but failed to agree on the timetable to implement it.
The ASX 200 index increased 11.70 to 4,571.10 and the broader All Ordinaries gained 12.59 to 4,593.47.
For the week, the ASX 200 index inched jumped 1.9% and closed at a new 15-month high.
Australian dollar decreased 1 cent to close at $1.0339 against the U.S. dollar.
In trading, turnover increased to 2.2 billion shares worth $4.83 and 508 stocks closed higher, 429 fell and 349 closed unchanged.
Resource sector stocks closed higher after China reported slowing economic data but still solid growth in retail sales, fixed investments and a sustained economic expansion.
BHP Billiton Limited advanced 44 cents to $35 and, Rio Tinto Limited jumped 41 cents to $59.15. Lynas Corporation Limited soared 3.5 cents or 5.4% to 68.5 cents and Iluka Resources surged 75 cents or 7.5% to $10.81.
Fortescue Metals increased 5 cents to $4.23.
Mirabela Nickel climbed 6.7% to 48 cents and Newcrest Mining plummeted 45 cents to $27.51. Kingsgate decreased 14 cents to $5.81 and Whitehaven Coal added 3 cents to $3.24.
Transfield Services lowered 1 cent to $1.65; engineering contractors WorleyParsons dropped 15 cents to $27.40 and Monadelphous Group advanced 39 cents to $21.63.
Oil Search Limited gained 11 cents to $7.65 and Santos Limited increased 20 cents to $11.99 and Woodside Petroleum climbed 78 cents to $35.98. Sundance Energy added 2 cents to 77.5 cents.
Origin Energy Limited closed unchanged at $11.58.
Seven West Media closed unchanged at $1.25, Ten Network plunged 2.5 cents or 8.2% to 28 cents and Fairfax Media down 1.5 cents to 36 cents and the controversial News Corp. gained 13 cents to $24.93.
Harvey Norman Holdings slid 4 cents to $2.01, Woolworths jumped 37 cents to $29.46 and Kathmandu closed unchanged at $1.50.
David Jones Limited decreased 4 cents to $2.61 and Wesfarmers increased 21 cents to $35.12. Breville Group gained 9 cents to $6.17.
Billabong International Limited added 2.5 cents to 85 cents.