Australian stocks followed their global peers higher Wednesday morning with a 1.2%. A rise in commodity prices boosted related stocks, while financials had also strengthened.

At midday, the All Ords added 57.8 to 4,790.9, while the ASX/200 gained 58.8 to 4,777.8. About 1.3 billion shares worth around $2 billion had changed hands. 

Consistent gains across the board saw the Banks and Financials sector 1.1% higher.

Westpac put on 38c, or 1.6% to $24.56 after yesterday announcing an interest rate hike of 45 basis points, almost double that what the Reserve Bank of Australia announced not long before. The market is waiting to see if there will be a major regulatory / government backlash in response to the decision.

The remaining three majors were between 0.9% and 1% higher.

Perpetual slid 14c to $32.64 as the company reaffirmed guidance for the six months to the end of this month. The diversified financial services company forecast post-tax profit to be between $40 million and $50 million during the period.

AMP was the best of the insurers, up 2.1% to $6.26.

Materials and Resources advanced 2.1% on the back of metals prices moving higher in London overnight, including a 2.1% rise in the price of copper. 

A weaker greenback sent commodity prices higher.

Rio Tinto put on $1.82, or 2.5% to $73.22, while BHP Billiton added 54c, or 1.3% to $41.88.

Gold stocks rallied as the price of the precious metal reached new all-time highs. Newcrest and Lihir jumped 4.2% and 3.9% to $38.96 and $3.72 respectively.

Bluescope Steel rallied 3.9% to $2.93 after announcing an increase to capacity at its plant in Indonesia.

Nufarm lagged to be down 58c to $10.66 after agreeing to extend its transaction implementation agreement deadline with Sinochem by another three weeks. Sinochem has propsed to takeover Nufarm with an offer of $13 per share.

Incitec Pivot jumped 4.3% to $2.94.

The Energy sector added 1.7% as stocks tracked the price of crude higher. Crude rose over $1 to US$78.37 a barrel in New York after strong manufacturing data from China was released and the greenback weakened.

Woodside put on 71c to $50.01, while Origin, Oil Search and Santos were between 1.8% and 1.9% higher.

WorleyParsons advanced 62c, or 2.3% to $27.28.

Sector heavyweight Leighton gained 68c to $37.12, helping the Industrials sector to a 0.9% advance.

Toll Holdings and Qantas rose 1.6% and 1.5% to $8.24 and 2.74 respectively.  

Consumer Discretionary gained 0.9%.

Fairfax added the most points to the index within the sector, putting on 3.5c to $1.655.

Seven added 2c to $6.48 as the Federal Court dismissed the company’s appeal against its loss in the $200 million C7 trade practices suit.

Retailer Harvey Norman added 7c to $4.43 and gamer Tabcorp advanced 7c to $7.29.

Telstra added 2c to $3.46 as it revealed plans to sell down its 51% stake in SouFun Holdings when the company is floated in Hong Kong. The Telecommunications sector was 0.5% above the line.          

Coca-Cola Amatil managed to stop Consumer Staples from falling below the line with a 26c, or 2.4% gain to $11.21. The sector was flat.

Wesfarmers dipped 14c to $29.22 and Woolworths edged 5c higher to $28.27.     

Metcash was flat after featuring heavily in broker reports this morning, including two ratings downgrades.

Dexus gained 1c to 83.5c after receiving planning approval or a $420m industrial estate in Western Sydney. The Property Trust sector was 0.5% in the black.

Lend Lease lost 33c to $9.57 after the company agreed to terms to commence a redevelopment of the Elephant and Castle development in London.

Around the region, the Nikkei 225 added 39.3 to 9,611.5, while the Straits Times Index gained 14.2 to 2,785.2. Meanwhile, the NZSE50 put on 10.6 to 3,157.2.

Spot gold was trading at US$1,202.15 per ounce, and the Aussie was buying US$0.9273. 

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Perpetual reaffirms guidance
Perpetual today reaffirmed guidance for the six months to 31 December 2009, saying it expected its post-tax profit would come in between $40 million and $50 million, up from $14.2 million in the previous corresponding period. The wealth management firm also forecast a dividend in excess of 60c per share, higher than the previous two dividend payouts.

At lunch, Perpetual shares were down 1c to $32.77.

Macarthur says coal sales have recovered
Macarthur Coal said coal sales have recovered from the GFC downturn as traditional customers have resumed buying contracted volumes and are seeking additional coal. The company also said it had identified projects which are under evaluation to fill its increasing infrastructure capacity to double production in the next five years.

Half way through the day, Macarthur Coal shares were up 25c to $9.40.

Nufarm extends talks with Sinochem
Nufarm and Sinochem Corporation have extended the deadline for execution of a Transaction Implementation Agreement (“TIA”) in regards to Sinochem’s proposal to acquire all of Nufarm’s shares for $13.00 each. Nufarm said the deadline had been extended by almost three weeks to 23 December 2009.

At lunch, Nufarm shares were down 48c to $10.76.

Dexus receives development approval
Dexus Property Group announced late yesterday that it had received planning approval for a $420 million industrial estate at Greystanes, Western Sydney. The group said this next stage of the development pipeline would be the most significant industrial offer available in the next few years in the expanding Greystanes area and the Greater Western Sydney region.

At the noon, Dexus shares were trading up 1.5c to 84c.