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Australian shares power higher

Australian shares have powered to new highs for a fifth consecutive day on a continuing wave of investor confidence.

The benchmark S&P/ASX200 index was up 24.4 points, or 0.35 per cent, at 7088.5 at noon AEDT on Monday after reaching a new high of 7092.5 in morning trade.

The broader All Ordinaries gained 25.9 points, or 0.36 per cent, to 7206.2.

The S&P/ASX200 is extending all-time highs reached on Friday after China's economic data showed better than expected growth.

It was up 1.95 per cent for the week, and 5.69 per cent higher for this year.

Most sectors surged in morning trade but the materials index was the biggest winner, adding 195.2 points, or 1.35 per cent, to 14,702.9 points.

Big mining stocks jumped, BHP adding 71 cents, or 1.75 per cent, to $41.31 at midday AEDT while Rio Tinto added $1.51 cents to $106.75.

Stephen Innes, Asia Pacific Market Strategist at AxiTrader, says the tailwind from better than expected data continues to support equity markets.

US stocks traded at record levels and those in Europe notched new highs on Friday after the Chinese growth data reassured investors.

"Indeed, there's a belief that global growth will continue to pick up speed over the coming months, as significant downside risks to the global economy have been turned aside, and worries over a possible recession have diminished, with the data giving credence to the possibility," he said.

The consumer discretionary, consumer staples, telecom, industrials and utilities indices were lower at noon.

Kogan shares plunged 20 per cent in early trade after the retailer and service business provided a business update that failed to please investors. By noon they were down $1.22, or 15.43 per cent, at $6.715.

Wesfarmers and Qantas were also down, the airline losing seven cents, or 0.98 per cent, to $7.08.

US equities also rallied through the week to new records, with the optimism spreading to Europe.

The Australian dollar was buying 0.68 US cents at noon AEDT.

Source: 9News https://www.9news.com.au/national/australian-shares-power-higher/49aadc59-3910-4e22-a36d-cd1e75853f1f

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