Australian stocks have continued their second day of gains, trading 2.4% higher in morning trade after receiving strong overseas leads in the form of positive economic news in the US.
US manufacturers ended 2011 with their best month of growth since the late spring, while the struggling construction industry enjoyed what is now a three-month streak of rising project spending.
In Australia, reports of rising industrial action had no effect on the stockmarket, seemingly drowned out by higher offshore commodity prices.
BHP's share price to soar more than 4%. Some smaller miners recorded even stronger gains – Intrepid Mines Limited was up 7.17%, while Onesteel Limited rose 6.62%.
Retailer Wesfarmers also had a strong performance, up 3.26%. All four banks were also in the black.
Gunns Limited recorded the greatest fall, down 3.85%.
China warns on "difficult" start to the year
China's Premier Wen Jiabao has warned of a difficult start to the year as the Government attempts to manage the juggling act of stimulating the local economy in the face of the global slowdown while trying to keep a lid on inflation.
"The first quarter of the year may be quite difficult," Wen told business people to mark the new year, according to a statement by the State Council, China's cabinet.
"We are now in a situation where pressure from an economic downturn and high prices both exist. We have a relatively cool market. This is the core of current problems."
Wen again pledged to ensure the Government would "guarantee steady growth".
Last month, in a bid to increase lending, it allowed banks to reduce the amount of capital they had to hold in reserve.
Qantas faces hundreds of excess pilots as international business woes continues: Report
Qantas captains estimate the national carrier could have more than 400 excess pilots over the next few years if incoming aircrafts are deferred or diverted elsewhere, the Australian Financial Review reports.
The AFR reports that about 150 long-haul pilots are believed to have agreed to leave without pay, and the airline might opt for mass redundancies for long-haul pilots if woes continue for the international business.
Captains also said that the company won't receive Boeing Dreamliner aircrafts until the division's performance improves.
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