Overnight Wall Street fell following a massive sell-off in Chinese shares, which plunged 6.7 per cent on Monday. The Shanghai Composite index has lost more than 20% of its value in one month.
US stocks ended flat overnight in light trade volumes as the market was awaiting the economic data this week. The Dow Jones Industrial Average edged higher to its highest close in more than nine months.
Wall Street finished higher in choppy trade as the upbeat economic data in Europe offset the news of disappointing retail sales in US. Wal-Mart's second-quarter earnings, above analyst's expectations, also helped to lift the market.
US stocks surged overnight as the Federal Reserve said the economy was leveling out, and it left interest rates unchanged at the end of its two-day policy meeting.
US stocks rose on Friday after Federal Reserve Chairman Ben Bernanke said the central bank is winding down its emergency lending programs established to end the financial crisis.
The Australian market closed firmer yesterday on stronger commodities prices and good leads from overseas markets. The benchmark S&P/ASX 200 index rose 49.5 points, or 1.24 per cent, at 4050.3 points, while the broader All Ordinaries index gained 51.3 points, or 1.28 per cent, to 4044.2 points.
Australian shares yesterday gained on the rise of Wall Street. The benchmark S&P/ASX200 gained 71.1 points, or 1.8 per cent, at 3995.6, while the broader All Ordinaries had gained 70.3 points, or 1.8 per cent, to 3987.8.
