SYDNEY, Dec 19 (Reuters) - Australian shares rose to their highest close in more than 17 months on Wednesday, lifted by strong metal prices and optimism over U.S. budget talks to avoid the "fiscal cliff" of automatic spending cuts and tax increases.
Top miners BHP Billiton Ltd and Rio Tinto Ltd jumped 1.1 percent and 1.6 percent respectively.
The benchmark S&P/ASX 200 index was up 22.6 points to 4,617.8, the highest close since July 8, 2011.
"Markets are in a feel-good mode about the fiscal cliff discussions," said Ric Spooner, market strategist at CMC Markets.
"Traders don't want to get left behind on any end-of-year rallies. It's been a prosperous December so far and it's continued today," he said.
U.S. stocks rallied on strong volume on Tuesday, capping off the S&P 500's best two-day run in a month, on confidence that a deal would be struck in Washington to avoid the painful spending cuts and tax hikes that could hurt the economy.
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Top miners BHP Billiton Ltd and Rio Tinto Ltd jumped 1.1 percent and 1.6 percent respectively.
The benchmark S&P/ASX 200 index was up 22.6 points to 4,617.8, the highest close since July 8, 2011.
"Markets are in a feel-good mode about the fiscal cliff discussions," said Ric Spooner, market strategist at CMC Markets.
"Traders don't want to get left behind on any end-of-year rallies. It's been a prosperous December so far and it's continued today," he said.
U.S. stocks rallied on strong volume on Tuesday, capping off the S&P 500's best two-day run in a month, on confidence that a deal would be struck in Washington to avoid the painful spending cuts and tax hikes that could hurt the economy.
Read Full Article>>>