US stocks have risen, helped by optimism that a military strike on Syria might be avoided.
The Dow Jones Industrial Average gained 140.62 (0.94 per cent) to 15,063.12 on Monday.
The broad-based S&P 500 increased 16.54 (1.00 per cent) to 1,671.71, while the tech-rich Nasdaq Composite Index put on 46.17 (1.26) at 3,706.18.
Stocks opened higher Monday morning after strong Chinese export data suggested better times for the world’s second-biggest economy.
The rally was given further strength by a Russian proposal to put Syrian chemical weapons under international control.
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The US reacted cautiously to the plan, which comes as President Barack Obama faces a sceptical reception in Congress to plans to launch a military strike on Syria. Stocks moved higher at midday and stayed fairly high through the close.
“The market seems to be anticipating that a strike can be avoided and a deal can be worked out,” said Peter Cardillo, chief market economist at Rockwell Global Capital.
The Australian dollar is higher off the back of the Chinese data.
Early Tuesday morning, the local unit was trading at 92.28 US cents, up from 91.98 cents on Monday.
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The Australian dollar continues to be driven higher by better-than-expected August trade figures from China, showing that stronger exports to recovering overseas economies caused the Asian nation’s trade surplus to widen to $US28.6 billion ($A31.50 billion).
The customs figures were the latest to boost confidence about the state of the Chinese economy, following last week’s stronger manufacturing data.
BK Asset Management managing director Kathy Lien said continued signs of stabilisation in the Chinese economy had offset some anxiety in the foreign exchange market.
“While growth in the US has been uneven, there has been a persistent sign of stabilisation in China that lent support to the commodity currencies,” Lien said.
“Over the past month, we have seen evidence of improving manufacturing activity around the world and China is benefiting from the uptick in demand.
“Inflationary pressures are also under control with CPI growth slowing in August and producer prices falling which, combined with stronger Chinese trade activity, should provide relief to investors.”
Lien said commodity currencies would be further supported if industrial production figures, to be released in China on Tuesday, show continued strength.
