AUSTRALIAN shares rose to a two-week high yesterday as China's strong March import data helped US shares to record highs, and after minutes of a Federal Reserve meeting did little to change the belief that it is committed to supporting the American economy with exceptionally easy monetary policy.
Weak domestic employment data did not affect shares, as analysts said the Reserve Bank of Australia had room to lower interest rates if needed.
The benchmark S&P/ASX 200 closed 0.8 per cent higher at 5007.1 after an early rise to 5013.3, its highest since March 25. That followed a 1.2 per cent rise in the US S&P 500.
"It looks like this mini-pullback could be over, with the market to close April a lot higher," said Goldman Sachs institutional trader Richard Coppleson.
Financials generated most of the strength, with the major banks rising between 1 per cent and 1.6 per cent, and QBE Insurance, AMP and Macquarie Group rising between 1 per cent and 1.8 per cent.
