SYDNEY --The Australian share market rose the most in seven months on Thursday as financial-year-end buying exaggerated a positive reaction to offshore gains following a Greek parliamentary vote in favor of austerity measures needed to avoid a debt default by Greece.
The benchmark S&P/ASX 200 closed up 78.5 points, or 1.7%, at 4608.0 after hitting a four-week high of 4609.2. Industrials, resources, healthcare, utilities and banks led broad-based gains, although trading volumes were no stronger than average.
On Wednesday night AEST, the package was approved in the first stage of a two-part vote by the Greek Parliament to unlock emergency finance from the European Union and International Monetary Fund.
The stage-two vote is scheduled overnight on Thursday.
Mr Johnson said the Australian bond market rallied on Thursday morning after the release of weak house price data and official job vacancy numbers.
However, the already high level of bond prices, and in turn low yields, capped the rally.
Mr Johnson said the rally stopped when three-year bond futures yields got too far below 4.75 per cent - the level of the Reserve Bank of Australia's (RBA) cash rate.
"The bad news is in the price," Mr Johnson said about bond traders' perceptions.
"Unless you really believe the RBA is going to cut rates, then the bad news is in the price," Mr Johnson said
He said after the second Greek vote was approved on Thursday, all eyes would turn to US June manufacturing data due on Friday night AEST.
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