The S&P/ASX 200 index rose 0.36% to close at 7,470.1 points. The benchmark ended 0.8% higher on Friday.
Industrial output and retail sales in China, Australia’s top trading partner, grew at a surprisingly faster pace in October and beat expectations, with output growing 3.5% from a 3.1% increase in September, and retail sales rising 4.9% year-on-year.
“The rebound in China’s industrial production and retail sales in October calmed concerns that the economy was losing momentum, even as a decline in new home prices highlighted pressures on the property market,” Brad Smoling, managing director at Smoling Stockbroking said.
“U.S. inflation reports from earlier last week had intensified concerns that the current spike in prices may take longer to cool, so the market is very happy with the China numbers today.”
Healthcare stocks jumped 1.2%, with heavyweight Resmed Inc adding 5.7% to hit its highest in more than two weeks, while biotech major CSL Ltd rose up to 1.3%.
Australia-listed drug developer Mesoblast jumped 14.7% and was the top gainer on the local bourse after releasing a positive phase three trial result of its stroke medicine.
Technology stocks rose 1.03%, taking cues from Wall Street where market-leading growth shares pushed the tech-heavy Nasdaq Composite index higher.
Data centre operator NEXTDC Ltd led gains on the sub-index, climbing 4.8%, followed by network operator Megaport Ltd, gaining 4.3%.
Financials were flat after falling 0.5% in mid-day trade as falling interest rates and inflation fears kept gains in check.
Australia’s No. 2 lender National Australia Bank dropped 1.5% as its shares traded ex-dividend, while, the country’s largest lender Commonwealth Bank gave up as much as 0.7%.
New Zealand’s benchmark S&P/NZX 50 index rose 0.4% to finish the session at 12,964.5 points.
