The Australian stock market posted gains of 1.6 per cent to end a four-day losing streak, led higher by gold, energy and materials after a bounce on commodity markets overnight. The benchmark S&P/ASX200 index was up 75.5 points or 1.65 per cent at 4,660.2, while the broader All Ordinaries index was 73.5 points or 1.58 per cent higher at 4735.1 points. On the ASX 24, the June share price index futures contract was up 77 points at 4,667 with 32,536 contracts traded. Among the S&P/ASX 50 only two companies finished in the red, Qantas Airways and AGL Energy. There were 10 companies up for every one down in the top 100.

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A bounce in commodity markets overnight helped push the materials and energy sector higher. BHP Billiton added 2.19 per cent, or 94 cents, to $43.91, while Rio Tinto gained $1.53, or 1.94 per cent, to $80.25. The major banks were higher also. Commonwealth was up 39 cents at $50.40, National Australia Bank was 17 cents higher at $26.15, ANZ had risen 37 cents to $22.07 and Westpac was up 53 cents at $22.25. Among other financials, wealth manager Perpetual Ltd said it had cut 128 jobs and slated its private wealth platform for sale as part of a new strategy to lift performance. Perpetual shares were up 38 cents at $28.18.

The S&P/ASX gold index was finished up 2.86 per cent, boosted by a three week high in gold prices overnight. The spot price of gold in Sydney was $1,530.50 per fine ounce, up $6.50 from Wednesday's close of $1,524. Shares in gold miner Newcrest Mining added $1.09, or 2.9 per cent, to $38.71. Energy stocks got a boost after oil prices pushed higher overnight, topping the $US101 a barrel level on forecasts from two US investment banks of sharply rising prices. Oil and gas producer Santos gained 3.89 per cent, or 54 cents, to $14.41 and Woodside Petroleum was up 83 cents, or 1.85 per cent, at $45.63. On Thursday, pay-TV operator Foxtel made a $1.93 billion bid for regional counterpart Austar United Communications, in a deal that would create one of Australia's largest media businesses.

The takeover proposal fuelled big gains in Austar shares, which added 10 cents, or 7.91 per cent, to $1.36. The largest harvest in the history of grain handler and marketer GrainCorp led to a record half year net profit and upgrade in annual guidance. GrainCorp shares were up 62 cents, or 7.99 per cent, at $8.38. Transport operator Asciano gained 3.5 cents, or 2.33 per cent, to $1.53 and ays the wharf dispute will cut its full year earnings by as much as $4 million. Preliminary national turnover was 2.39 billion shares, worth $6.81 billion, with 639 stocks up, 403 down and 411 unchanged.

The Australian dollar rallied sharply in Asian trade Thursday on robust readings of the country's investment pipeline and comments from a member of Australia's central bank. Australian bonds sank on the data and speech, with the short end of the curve particularly vulnerable. Early in the day's trading, Ric Battellino, deputy governor at the Reserve Bank of Australia, said interest rates will have to rise around the world to combat growing inflationary pressure. The comments came just ahead of the central bank's next board meeting set for June 7, after the bank has been on hold with rates at 4.75% since November. The Australian dollar was changing hands at $1.0597, up from $1.0450 late Wednesday and just below a key resistance level of $1.0600. Against the Japanese yen, the Australian dollar was at 86.605, up from 85.64.

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