Thursday, 29 November 2012 11:57
MELBOURNE: Australian shares rose 0.7 percent to a three-week high on Thursday, supported by banks and gains in global miner Rio Tinto after it gave an upbeat outlook on China and cost-cutting pledges.
Australian business spending data showed a fall in planned mining investment for the year ending June 2013, suggesting to some the Reserve Bank of Australia may lower rates again next week after it held fire earlier this month after a cut in October.
"Australian capital expenditure data has increased the chances of a December interest rate cut. The idea that we are nearing a peak in mining investment pushes the focus onto the RBA's ability to shore up our economy," said Ben Taylor, trader at CMC Markets.
The benchmark S&P/ASX 200 index rose 30 points to 4,477.7, according to the latest data, the highest close since Nov 8. The index slipped 0.2 percent on Wednesday, but is up from a ...