The ASX positive after after a soft start whenstronger than expected jobs data boosted investor confidence in the local economy.

Around midday, the benchmark S&P/ASX200 index was up 8.8 points, or 0.2 per cent, at 4695.6, after earlier falling as low as 4668.3. The broader All Ordinaries index rose 11 points, or 0.2 per cent, to 4749 points.

Among the major sub-indicies, materials rose 0.9 per cent, gold gained 0.8 per cent on the back of a fresh record in the gold price, while financials slipped 0.2 per cent.

Shares jumped after the release of strong employment data, showing the economy added a net 49,500 jobs in September. The jobless rate remained at 5.1 per cent.

Advertisement: Story continues below The Australian dollar leapt more than half a US cent on the news to 98.4 US cents – approaching its highest in almost three decades.

ACMC Markets head of trading James Foulsham said the jobs data helped spark what had been a subdued start to the trading day.

‘‘It was a bit of a lifeless start, but as soon as the numbers came out the market kicked on,’’ Mr Foulsham said. ‘‘It certainly did make a difference to the market, pretty much across the board.’’

Major miners outperformed the broader market throughout the morning, continuing on from gains the previous day.

BHP Billiton was up 41 cents, or 1 per cent, at $40.94, while Rio Tinto had risen 70 cents, or 0.9 per cent, to $79.69. Fortescue Metals was up 2 cents, or 0.4 per cent, at $5.47.

The big retail banks were mostly weaker. CBA was down 43 cents at $51.41, NAB was off 2 cents at $25.86 and Westpac had slipped 14 cents to $23.28, but ANZ was up 1 cent at $24.08. Investment bank Macquarie was 16 cents weaker at $36.50.

Making news, engineering group Monadelphous says it has won contracts worth $120 million for projects in Papua New Guinea and Western Australia. Monadelphous was up 3 cents at $16.23.

Junior gold explorer Beadell Resources announced further high grade drill results from its Tucano gold project in Brazil. Beadell was 3.5 cents higher at 43 cents.

Gold miner Newcrest Mining was up 45 cents at $42.46. Gold One International said it had received approval for a $US65 million loan facility from Absa Capital and BNP Paribas. The stock was steady at 29 cents.

“Yesterday we had a huge day. We’re definitely at a cross roads and we need some guidance. We’re not sure who to believe,” said Markus Mueller, director at RBS Morgans Reynolds Equities.

“We’re not sure if the US is more important, or China, or if the US has a soft spot if it’s going to cause a headache again like we had two years ago. That’s the big problem,” he said.

Shayne Heffernan www.livetradingnews.com

Posted by Shayne Heffernan on Oct 6th, 2010and filed underAnalysis, Asia, Asia-Pacific Companies, Australia, Commodities, Companies, Mining, Shayne Heffernan.You can follow any responses to this entry through theRSS 2.0You can leave a response by filling following comment form or trackback to this entry from your site