(Updates with comments, stocks on the move)
MELBOURNE, Oct 9 (Reuters) - Australian shares climbed 0.5 percent to a fresh 14-month high on Tuesday on a jump in iron ore prices that helped offset concerns about global economic growth.
The benchmark S&P/ASX 200 index
advanced 20.3 points to 4,502.2 at 0031 GMT, breaching the psychological 4,500 level to hit its best intraday level since Aug. 1, 2011. The benchmark fell 0.3 percent to 4,481.9 on Monday.
Miners gained after the price of iron ore surged 6 percent to $110.40, bringing its price recovery to 27 percent from three-year lows hit in September.
No. 3 iron ore miner Fortescue Metals Group
jumped
5.7 percent, while Rio Tinto
rose 1.8 percent. Mid-cap miners Atlas Iron
rose 3.6 percent and Northern Iron
gained 4.6 percent, recouping some recent sharp losses.
"Iron ore prices went up quite aggressively so that is helping them along. Most of these companies would have a decent margin at these levels," said Patersons Securites senior dealer Martin Angel.
He added that new discoveries and merger activity among the small and mid-cap miners were also helping underpin investor interest.
But concerns about global growth continued to cap gains. For 2012, the IMF said it now expects global output to grow just 3.3 percent, down from its July estimate of 3.5 percent, and China's economic growth is expected to weaken to 7.8 percent this year.
New Zealand's benchmark NZX 50 index
was flat at 3,924. STOCKS ON THE MOVE
* Investors welcomed news that surfwear retailer Billabong International Ltd
, which is fending off a $700 million private equity bid, has appointed respected former fashion executive Ian Pollard as chairman to guide a turnaround.
The shares rose as much as 3 percent to A$1.04, but remain well below TPG's offer price of A$1.45 per share as the market bets a deal will not eventuate.
* Shares in Seven West Media Ltd
, owner of Australia's top-rated free-to-air television network, surged for a second day, rising 5 percent after an analyst report on Monday speculated about a buyout by its largest shareholder, Seven Group Holdings.
* Troubled retailer Mothercare Australia
asked for its shares to be suspended ahead of an announcement about a deal to put fresh capital into the baby equipment and clothing chain.
(Reporting by Victoria Thieberger; Editing by Edwina Gibbs)
((victoria.thieberger@thomsonreuters.com +61 3 9286 1421)(Reuters Messaging: victoria.thieberger.reuters.com@reuters.net))
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