Australian Market Advances Despite Weak Wall Street Lead

(RTTNews) - The Australian stock market is higher on Monday despite the negative cues from Wall Street on Friday. Mining stocks are leading the gainers following a strong rise in iron ore prices. A weaker Australian dollar also boosted investor sentiment.

In late-morning trades, the benchmark S&P/ASX200 Index is adding 46.30 points or 0.82 percent to 5,711.00, off a high of 5,712.70 earlier. The broader All Ordinaries Index is up 43.30 points or 0.76 percent to 5,711.50.

Among the miners, BHP Billiton (BHP) is adding 0.7 percent and Rio Tinto is advancing more than 1 percent. Fortescue Metals is higher by more than 3 percent and junior miner BC Iron is gaining more than 2 percent on the back of a strong rise in iron ore prices.

Gold miners Newcrest Mining is adding more than 1 percent, while Evolution Mining shares are in a trading halt after the company said it has acquired the Cowal gold mine in central NSW from Canada's Barrick Gold for $550 million.

Independence Group has agreed to acquire nickel miner Sirius Resources for A$1.8 billion. The combined company will be called S2 Resources and will be headed by Sirius' founding director Mark Bennett. Shares of Independence Group are down more than 9 percent, while shares of Sirius are surging more than 20 percent.

In the oil space, Woodside Petroleum and Oil Search are up more than 1 percent, while Santos is adding almost 3 percent.

The Big Four banks are also higher. Australia and New Zealand Banking Group and Commonwealth Bank are up almost 1 percent, National Australia Bank is adding 0.2 percent and Westpac (WBK) is higher by 0.3 percent.

Shares of workplace provider Skilled Group are gaining almost 11 percent after the company said it is in merger talks with rival Programmed Maintenance Services, after earlier rejecting a takeover offer from the company in January. Programmed's shares are down more than 4 percent.

In the currency market, the Australian dollar is lower against the U.S. dollar following the release of strong US inflation data. In early trades, the local unit was trading at US$0.7823, down from US$0.7912 on Friday.

U.S. stocks closed lower Friday after hawkish remarks from Federal Reserve Chair Janet Yellen, who said the central bank will likely raise interest rates this year, as long as economic activity picks up. The choppy trading also followed the release of the Labor Department's closely watched report on consumer price inflation.

The S&P 500 closed 4.76 points or 0.2 percent lower at 2,126.06, the Dow Jones Industrial Average closed 53.72 points or 0.3 percent lower at 18,232.02 and the Nasdaq Composite index ended the session down 1.43 points at 5,089.36.

The majority of the European markets ended Friday's session in negative territory as investor concerns over Greece continued to impact the markets. The DAX of Germany declined by 0.42 percent and the CAC 40 of France fell by 0.07 percent, while the FTSE of the U.K. gained 0.26 percent.

U.S. crude oil ended snapped a two-day gain to end lower on Friday, as the dollar strengthened against a select band of currencies with investors weighing the Federal Reserve stand on holding interest rates at zero for the time being.

Crude Oil futures for July delivery, the most actively traded contract, dived $1.00 or 1.7 percent, to settle at $59.72 a barrel on the New York Mercantile Exchange Friday.