Australian stocks rose yesterday even as investor confidence in the Asia Pacific declined to its lowest level in a month, a report showed.
The S&P/ASX 200 index ended higher by 20 points to 5443 points, buoyed by rallies in energy and materials firms.
Investment bank Babcock and Brown surged 16 per cent to $6.88 on reports that its wind fund may receive over $3 billion for its European assets.
Investor confidence in the Asia Pacific fell to 79.4 points in June from 85.2 in May, according to a report compiled by State Street Global Markets (SSGM).
"For the first time since the scare of early 2006, Asian investors are processing the choice between more currency adjustment or greater inflation over the coming year," the report said.
"Neither is going to be easy, it's a timely and sobering reckoning that is taking place."
Investor confidence in North America rose to 85.2 points in June from 83.5 a month ago, while European optimism rose to 81.6 from 73.4 in the same period.
Rio Tinto added $3.09 or 2.25 per cent to $140.15, Woodside Petroleum rose $1.55 or 2.5 per cent to $63.75 and BHP Billiton added 39 cents or nearly 1 per cent to $45.32 in trading yesterday.
Funds on financial planning platforms have reaped rewards as shares of energy companies have soared from high oil prices.
Funds with overweight positions in energy companies included the Aberdeen Emerging Opportunities Fund, Walter Scott Global Equity Fund and the EQT SGH Absolute Return Trust, Morningstar data showed.
