The Australian share market surged 1.8 per cent to a two-week high on positive economic data from the US and China and the prospect of quantitative easing in Europe. The benchmark S&P/ASX200 index was up 89.6 points, or 1.96 per cent, at 4,676.2, while the broader All Ordinaries index has climbed 85 points, or 1.82 per cent to 4,761.8. On the ASX 24, the December share price index futures contract was 93 points higher at 4,688 points, with 39,598 contracts traded. The Euro climbed against the US dollar, which helped both commodity prices, and in turn, Australia's miners, rise. BHP Billiton jumped $1.13 or 2.62 per cent to $44.33, while rival Rio Tinto advanced $1.91 or 2.3 per cent to $85.01. ANZ Banking Group led the banking sector, surging 77 cents, or 3.4 per cent, to $23.42. National Australia Bank gained 61 cents, or 2.62 per cent, to $23.91, Westpac added 51 cents, or 2.38 per cent, to $21.96 and Commonwealth Bank advanced 78 cents, or 1.61 per cent to $49.30.

Regional player Bendigo and Adelaide Bank soared 44 cents, or 4.51 per cent to $10.20, and Suncorp Metway Ltd gained 13 cents, or 1.44 per cent, to $9.14. Oil Search was the standout among major oil stocks, and gained 17 cents, or 2.49 per cent, to $7.00. The spot price of gold in Sydney was trading at $1,390.60 per fine ounce, down $2.08 from Wednesday's closing price of $1,392.68. Newcrest Mining gained 71 cents or 1.79 per cent to $40.40. Most retailers were higher except Myer Holdings which fell three cents to $3.55 and Metcash Ltd which lost eight cents, or 1.88 per cent to $4.17. Major media stocks made gains with News Corporation adding 30 cents, or 1.87 per cent to $16.31 and its non-voting scrip up 27 cents, or 1.88 per cent to $14.60. Qantas gained three cents or 1.15 per cent to $2.64. Qantas said it will conduct further inspections of its A380 engines, but says this should not disrupt its international flights.

Caltex Australia surged 59 cents, or 4.47 per cent to $13.79, despite the competition watchdog raising concerns about Caltex Australia Ltd's acquisition of Mobil's fuel terminal at the Queensland port of Gladstone. Leighton Holdings climbed $1.05, or 3.36 per cent, to $32.31 after its subsidiary Thiess won a $5.5 billion coal mine development contract in India. Agricultural chemicals supplier Nufarm gained 16 cents, or 3.45 per cent to $4.80 after saying it expects operating profit in the first half of 2010/11 to be $10-20 million. Pike River Coal Ltd was suspended from trading on Thursday as a mark of respect for the 29 men who lost their lives at the Pike River Coal mine. Pike last traded at 61 cents. Newsat Ltd was the top traded stock by volume with 87 million shares traded for a value of $521,655. Newsat's shares were flat at 0.6 cents. Preliminary national turnover reached 2.55 billion shares, worth $5.5 billion, with 726 shares trading up, 406 down and 365 unchanged.

The Australian dollar was higher late Thursday but ended well below its intraday high after a sharp drop in October retail sales signaled interest rates are likely to be on hold until well into 2011. Retail sales fell by a seasonally-adjusted 1.1% in October from September, with discretionary spending on cafes, restaurants and clothing hit hard, according to the Australian Bureau of Statistics. It was the largest monthly fall in retail sales since July 2009. Economists expected a rise of 0.4%. But softening the blow to the Aussie dollar was news of strong trade surplus in October. Australia posted a stronger than expected trade surplus in October of $2.63 billion, compared with an expected surplus of $2.0 billion. Imports fell 3% over the month and exports rose 1%. The Australian dollar traded at $0.9656, up from $0.9595 late Thursday. Against the Japanese yen, the currency traded at 81.22, from 80.095