Aussie stocks up on Asian stimulus talk

A rally in Asian equities flowed into Aussie stocks with miners and banks dragging the market half a percent higher.

At Monday's close, the benchmark S&P/ASX200 index was up 29 points, or 0.56 per cent, at 5,358.9 points, while the All Ordinaries index was up 24 points, or 0.44 per cent, at 5,420.3 points.

Given the weak offshore leads at the open on Monday, it's a "somewhat unexpected" result given the falls in U.S. equities on Friday and the weak Chinese data released over the weekend, CMC Markets chief market analyst Ric Spooner told Xinhua.

Comments from the Peoples Bank of China (PBoC) over the weekend essentially said "the economy would continue to be supported by stimulus" despite the downbeat tones of a pull back that was feared following a People's Daily article a couple of weeks ago, Spooner said.

Positive stimulus talk flowed for a "positive day in Asia", Spooner said, supporting some risk assets like the miners.

Aussie banks were also bid on Monday as the market continues its adjustment for a potentially lower Reserve Bank of Australia (RBA) cash rate.

"We saw the 10-year bond yield at record lows and below supports in terms of yield than last year," Spooner said.

"So we've seen ongoing buying of banks and yield stocks" in the equity market.

On Monday ANZ was up 0.83 percent, the Commonwealth Bank of Australia gained 0.79 percent, the National Australia Bank rose 0.45 percent and Westpac was 0.84 percent stronger.

BHP Billiton rallied 1.98 percent, rival Rio Tinto lifted 1.25 percent and gold miner Newcrest was 0.86 percent higher.

Oil Search closed flat, while Santos fell 0.72 percent and Woodside Petroleum slid 0.67 percent.

Wesfarmers climbed 0.87 percent while rival Woolworths added 0.40 percent.

Qantas bounced 3.66 percent and Telstra edged 0.62 percent higher. Endit