Australian shares have opened better than expected, making gains in early trade.
Australian shares have opened better than expected, making gains in early trade.
At 1035 AEST on Thursday, the benchmark S&P/ASX200 index was up 19.1 points, or 0.35 per cent, at 5,421.1.
The broader All Ordinaries index was up 18.9 points, or 0.35 per cent, at 5,405.7.
The September share price index futures contract was 31 points higher at 5,384, with 9,544 contracts traded.
National turnover was 364 million securities worth $499 million.
Wall Street stocks provided a positive lead despite weak data overnight showing first-quarter economic activity contracted much more than previously thought.
Gains in metals prices, including gold, copper and nickel along with iron ore have boosted resources stocks, while news that the US will start oil exports have eased global supply concerns related to Iraq's unrest.
IG market strategist Stan Shamu said sentiment had improved from Wednesday, but the challenge for the Australian market was overcoming the fact that large stocks Transurban and Stockland were trading ex-dividend and their shares had fallen.
"The question is if we can we hold on to these gains. There is still geopolitical risk around with Iraq ramping up a bit and the possible further US sanctions for Russia," he said.
The best performer among the larger stocks was power company AGL, which was 42 cents, or 2.8 per cent, higher at $15.60.
That follows a legal win allowing its $1.5 billion purchase of state-owned Macquarie Generation.
The major banks have bounced back after falling solidly on Wednesday.
Westpac had found 33 cents to $34.16, National Australia Bank had gained 16 cents to $32.96, Commonwealth Bank had climbed 31 cents to $81.33 and ANZ was 15 cents stronger at $33.57.
Among the big miners, Rio Tinto had jumped 20 cents to $59.27, BHP was flat at $36.21 while Fortescue Metals was one cent up at $4.37.
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