Australia shares up 1.3pc; big miners, Woodside gain

MELBOURNE: Australian stocks rose 1.3 percent on Wednesday on optimism about Greece's ability to manage its debt crisis and a rally in copper prices. Prospects Greece would pass an austerity package improved when a key deputy backtracked and said he would support the plan. The package is needed to prevent Greece becoming the first developed nation in more than 60 years to default on its debts. See .

"If this major (Greek debt) issue doesn't become a contagion, people are a little bit more comfortable. But we'll see whether the market will sell into this rise as they have done the last few days," said Macquarie Equities division director Lucinda Chan.

Share gains have been limited this month as funds are reluctant to open new positions ahead of Thursday's financial year close. The local market is down 6.8 percent for the quarter, on track for the worst quarterly performance in a year.

"There's interest in the market, no doubt. There are great buying opportunities given indices have dropped to the extent that they have but why risk the situation too early? There are takers out there but it's a timing thing right now. You have to be certain before you rush in," said Chan.

The benchmark S&P/ASX 200 index was up 57.8 points at 4,532.10 by 0214 GMT.

New Zealand's benchmark NZX 50 index rose 0.1 percent to 3,445.9.

* BHP Billiton jumped 1.9 percent while Rio Tinto was up 1.6 percent after copper prices rose 1.1 percent in London.

Woodside Petroleum bounced 2.4 percent to A$40.57 after oil prices rose more than 2 percent.

* Rail and port operator Asciano advanced 2.3 percent to A$1.585 after it renegotiated its contract with Rio Tinto coal arm Coal & Allied to haul up to 30 million tonnes of coal a year for at least 10 years.

* Top home and car insurer Insurance Australia Group fell 2.7 percent to A$3.31 after NRMA Motoring and Services sold A$45 million of IAG shares. The roadside assistance business wants a bigger share of revenue from the IAG insurance products it sells its members, The Sydney Morning Herald said. Under a demutualisation deal struck in 2000, NRMA is prevented from holding less than a 2 percent stake in IAG.

* Dominant phone company Telstra fell 0.7 percent to A$2.89. Telstra said Chief Financial Officer John Stanhope will retire at year-end after more than 40 years with the company. Telstra fell below A$3 this month after it agreed the state-owned National Broadband Network will buy much of its network. Ratings agency Moody's said it may downgrade Telstra's credit ratings on concern its profit margins will shrink as it loses its monopoly operating position.

* Moly Mines Ltd rallied 3.9 percent to A$0.80 after revealing loans of $494 million from China Development Bank Corp (CDB) for the construction of its Spinifex Ridge molybdenum and copper project in Western Australia. See.

* Sundance Resources rose as much as 6.4 percent after it said it had shortlisted potential partners for its iron project in West Africa. Its shares rose to a high of A$0.335 and last traded up 4.8 percent at A$0.33.

Copyright Reuters, 2011