4:45 PM Sydney – Market indexes in Australia gained following a surge in stocks in New York. Resource and bank stocks led the advance. For the week, the ASX index gained 0.3% and Australian dollar closed at 94.69 cents.
Stocks in Australia and in Asia traded higher as investors overlooked the ongoing political stalemate in the U.S.
President Barack Obama rejected the latest proposal from Republican leaders that offered a short term increase in debt limit but put tighter controls on the U.S. treasury office and proposed to keep the government closed.
The U.S. is running out of money and the government is expected to face debt default as early as October 17 if the debt ceiling is not revised.
Wall Street cheered the Republican proposal as a sign that two parties are at least talking but President rejected the proposal after the market close on Thursday.
U.S. has racked up $16.7 trillion in debt and spends at least $1.5 trillion more than its revenues a year and is the largest indebted nation on the earth.
The unfunded wars in the first decade of this century and the subsequent financial and economic crisis added nearly $5 trillion in debt in less than eight years to 2009.
The ASX 200 index gained 80 points to close at 5,227 and for the week the index advanced 0.3%.
In trading, 696 million shares changed hands worth $4 billion as resource and banking stocks led the most active list.
Stocks in Review
Bega Cheese Limited increased 3% to $3.24 and the company said it will not lift its takeover offer for Warrnambool Cheese and Butter despite a higher competing bid from a Canada based company.
Dexus Property Group increased 1% to $1.25 and the company is partnership with Canada Pension Plan Investment Board proposed to buy out the remaining stake in Commonwealth Property Fund. Dexus controls 19% of the fund.
UGL gained 23 cents to $7.83 and the engineering chief Russell Waugh resigned because of his alleged involvement in bribery scandal during his employment with Leighton Holdings.
BHP Billiton increased 51 cents to $35.13, Rio Tinto gained $1.37 to $61.58 and Fortescue Metals advanced 12 cents to $5.
Telstra gained 5 cents to $4.97.
Commonwealth Bank added $1.52 to $72.32. Westpac increased 79 cents to $32.99, ANZ advanced 74 cents to $31.29 and National Australia Bank rose 70 cents to $34.87.
Ozforex Group Limited began trading today after it priced its initial public offering at $2.50 a share. The stock opened at $2.59 and closed at $2.56.