Aussie market jumps on OPEC deal

The Australian market jumped on the oil rally on Thursday, closing 1 percent higher after OPEC (Organization of the Petroleum Exporting Countries) agreed to cut production to 32.5 million barrels per day.

The benchmark S&P/ASX 200 index was up 59.70 points, or 1.10 percent, at 5,500.20 points, while the broader All Ordinaries index was up 58.00 points, or 1.05 percent, at 5,560.40 points.

The energy sector was up "a stonking" 11.2 percent on the back of the deal, while resources stocks also rallied on "pretty healthy PMI data out of China," CMC Markets chief market analyst Ric Spooner told Xinhua.

"Apart from the direct impact on energy stocks, in some ways it might be quite healthy for world economies at this stage," Spooner said.

"Normally cheaper oil is seen as a good thing, but in the current context it just helps to get inflation up a bit and get things back more towards normality economically."

Gains in benchmark crude however "won't go too far" with analysts eyeing an equilibrium around the 50 U.S. dollar per barrel threshold as there's still overcapacity outside the OPEC deal, including swing production from U.S. shale. Oil.

On Thursday Oil Search rallied 9.15 percent, Santos bounced 11.70 percent and Woodside Petroleum 6.48 percent stronger.

BHP Billiton surged 4.92 percent, rival Rio Tinto lifted 1.65 percent, gold miner Newcrest however shed 2.87 percent.

ANZ gained 0.95 percent, the Commonwealth Bank of Australia added 1.12 percent, the National Australia Bank rose 1.56 percent and Westpac was up 1.22 percent.

Wesfarmers lost 0.65 percent but rival Woolworths was 1.09 percent higher.

Qantas shed 2.42 percent while telecom giant Telstra was 0.99 percent weaker. Endit