The Reserve Bank of Australia (RBA) said it is keeping interest rates unchanged at 2 percent. At a meeting Tuesday the central bank said the Australian economy is expanding at a moderate pace despite a sharp fall in commodity prices that has hurt Australia's trade sector.
The ASX 200 maintained its morning gains and traded 107 points, or 2 percent, higher at 5,279 in afternoon trade while Australian banking shares edged slightly higher on the news, hoping for a possible increase in lending.
According to a bank spokesman, “While GDP growth has been somewhat below longer-term averages for some time, business surveys suggest a gradual improvement in conditions in non-mining sectors over the past year. This has been accompanied by stronger growth in employment and a steady rate of unemployment."
Asian Markets Still Up
Other Asian markets continued its run up on Tuesday despite a lower finish on Wall Street overnight while Chinese markets traded down as investor sentiment dropped on reports from November PMI surveys. Investors are watching for key data due later this week.
U.S. stocks closed lower on Monday, weighed by retail results. The Dow Jones Industrial Average was down 79 points, or 0.44 percent, at 17,720; the S&P 500 was 10 points, or 0.46 percent, lower at 2,080; and the Nasdaq fell 19 points, or 0.37 percent, to 5,109.
The S&P 500 managed a 0.05 percent gain for November, while the Nasdaq was up more than 1 percent for the month. The Dow Jones industrial average ended the month up 0.3 percent.