Eds: Reissuing to correct dateline
SYDNEY, April 13 AAP - Australian stocks have opened more than one per cent higher as strong Chinese lending figures drives gains in the materials sector.
At 1015 AEST on Friday, the benchmark S&P/ASX200 index was up 44.5 points, or 1.04 per cent, at 4,325.1, while the broader All Ordinaries index was up 42.7 points, or 0.98 per cent, at 4,404.4.
On the ASX 24, the June share price index futures contract was 36 points higher at 4,331 with 10,491 contracts traded.
US stocks jumped in offshore trade as traders grew bullish on fresh economic indicators in the United States, Asia and Europe.
Data released overnight showed a surge in lending of more than one trillion yuan in China which will flow into second and third quarter GDP numbers.
The Dow Jones Industrial Average closed up 181.19 points, or 1.41 per cent, at 12,986.58.
IG Markets analyst Chris Weston said strong lending figures out of China had buoyed local investors ahead of the release of Chinese GDP results on Friday night.
"Our materials are firing on all cylinders," he said.
"This is a China story we're seeing at the moment and the talk overnight was that we're going to see a strong GDP print from China."
The Chinese lending results reinforced the view that there would be a soft landing in China.
"We're seeing buying coming through in these materials stocks."
Market heavyweights Rio Tinto and BHP Billiton were substantially higher, with Rio shares up 2.65 per cent at $66.17 and BHP shares were up 1.9 per cent at $34.54.
Fortescue Metals Group was 12 cents, or 2.1 per cent, higher at $5.80.
Meanwhile, Lynas Group shares were almost eight per cent higher at $1.11 after the High Court of Malaysia knocked back a request to review the recent decision to grant the rare earths miner a temporary licence for a processing plant.
The spot price of gold in Sydney was $US $1,675.59 per fine ounce, up $US17.11 from Thursday's local close of $US1,658.48 per ounce.
National turnover was 292 million securities worth $390 million, with 446 stocks up, 123 down and 227 unchanged.
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