Australia shares up 0.8pc; Harvey Norman gains

MELBOURNE: Australian stocks advanced 0.8 percent on Tuesday, led by the banks and miners, and supported by a better reading for consumer spending that lifted Wall Street.

Shares in Macarthur Coal were halted as the company said its board recommended a sweetened A$4.9 billion ($5.2 billion) takeover offer from Peabody Energy and ArcelorMittal .

The benchmark S&P/ASX 200 index gained 34.4 points to 4,297.5 at 0120 GMT. The index climbed 1.5 percent on Monday, after the US Federal Reserve chief left the door open to fresh stimulus, but shares remain more than 9 percent down this year.

New Zealand's benchmark NZX 50 index gained 0.8 percent to 3,331.5.

Among the top four banks, top lender National Australia Bank gained 1.7 percent to A$23.83 and Commonwealth rose 1.0 percent to A$48.42.

STOCKS ON THE MOVE

Shares in electrical and furniture retailer Harvey Norman initially jumped 4 percent after posting a 9 percent rise in annual net profit. But the retailer also said like-for-like sales for July and August fell 6.5 percent and it was cautious on the outlook for 2012.

The shares last traded up 2 percent at A$2.07.

Defensive shares such as the top supermarkets Woolworths and Wesfarmers underperformed the market, rising 0.5 percent and 0.4 percent respectively.

Media reported that Heinz officials told a US analyst call that Australia's supermarket duopoly had created an "inhospitable environment" for food makers and eroded Heinz's margins in the local market.

Shares in drilling contractor Ausdrill jumped 3.6 percent to A$3.43 after the company posted net profit growth of 52 percent.

Copyright Reuters, 2011