Australia market extends rally on rate cut hopes

The Australian share market advanced on Monday, 02 February 2015, registering eighth session of consecutive rise, amid speculation that the central bank will lower interest rates at policy meeting on Tuesday. The benchmark S&P/ASX 200 Index rose 0.66% to 5625.30 and the broader All Ordinaries Index gained 0.63% to 5586.50. In the January 2015, the S&P/ASX 200 Index rose 3.3% and the All Ordinaries went up 3%.

Australian investors shrugged off the weak manufacturing activity data in China, the country's largest trading partner, and continued to pour money into higher-yielding equities, expecting that the reserve bank will lower interest rates when its policy-making board meets for the first time this year.

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