Australian shares close highest in 21 months

23 Jan 2013

Australian shares were up 0.2  per cent on today, enough to end highest at close in almost 21 months with miner BHP Billiton gained following its reporting  a rise in quarterly iron ore production.

The market remained unaffected as data showed Australian consumer price inflation was unexpectedly benign last quarter thanks to decline in food, electronics and drugs.

The local dollar eased marginally with slight improvement in chances for an interest rate cut next month.

Australia's benchmark S&P / ASX 200 index was up 9 points to 4,787.8, latest data showed, which was the best since 2 May 2011.

Meanwhile, BHP Billiton is on track for improving its full year iron ore production following better-than-expected results in the final three months of 2012.

BHP beat analysts' expectations yesterday with iron ore production at 42.19 MT for the three months to 31 December, which was up 3 per cent on the prior corresponding period.