8:00 PM Sydney – Australian stocks gained after a streak of 3-day losses and on the rising exports of commodities to Asia. December exports rose 2% to $27.92 billion and trade surplus widened to $1.71 billion. The supermarket chain Coles said food and liquor sales increased 4.1% in the quarter to December.

Australian stocks snapped a three-day losing trend and rebounded after exports rose 2% and mining sector advanced on merger talks between two Switzerland based companies.

The ASX 200 index gained 42.1 or 1% to 4,267.8 and All Ordinaries index rose 42.2 or 1% to 4,333.2.

The Australian dollar edged up above $1.06.

December exports increased 2% to $27.92 billion and imports rose 1% to $26.08 billion, according to data released by the Australian Bureau of Statistics. Monthly trade surplus jumped more than 20% to $1.71 billion.

The exports were second largest after the record exports of $28.05 billion in August of last year. Shipment of iron ore rose 24% and thermal coal volumes gained 25% in the month largely on the sustained demand from Asian nations.

Stock Movers

BHP Billiton Ltd rose 71 cents to $37.62 and Rio Tinto Ltd closed up $1.98 to $70.72 on the talks that Switzerland based Glencore and London listed Xstrata are in merger talks that lead to the largest merger in the commodities industry.

Fortescue Metals Group increased 3 cents to $5.01, Lynas Corporation Limited closed higher 25 cent at $1.59 and Iluka Resources increased 23 cents to $17.86. Newcrest Mining added 42 cents to $33.92 and the company chief forecasted god price to surge as much as $2,500 in a few years.

Oil Search Limited traded down 5 cents to $6.51, Santos Limited closed up 34 cents at $13.66 and Woodside Petroleum increased 15 cents to $34.15.

Commonwealth Bank of Australia increased 22 cents to $50.66 and ANZ gained 9 cents to $21.36 and Westpac inched higher 7 cents to $20.92. National Australia Bank added 23 cents to $23.89.

David Jones Limited decreased 6 cents to $2.60 and Harvey Norman Holdings closed flat at $2.04.

Wesfarmers Limited increased 19 cents to $29.90 after it supermarket Coles reported fourteenth quarterly comparable sales growth and sales in the December quarter were $9.4 billion. Sales in the first half increased 7.3% to $17.5 billion and quarterly revenues at Target declined 3.1% to $1.3 billion and Kmart dropped 2.2% to $1.4 billion.

Woolworths Limited closed down 10 cents to $24.60 and JB Hi-Fi Limited closed down 17 cents to $12.43. Billabong International Ltd closed down 7 cents to $1.84 and Kathmandu traded flat at $1.27.

Qantas Airways Ltd added 4 cents to $1.60 after the company raised prices on its domestic and international segments blaming carbon tax and higher fuel costs. Virgin Australia gained 2 cents to 34 cents and Flight Centre increased 66 cents to $19.71.

QR National closed up 1 cent to $3.72.