(Updates with comments, stocks on the move)
MELBOURNE, Oct 9 (Reuters) - Australian shares climbed 0.5percent to a fresh 14-month high on Tuesday on a jump in ironore prices that helped offset concerns about global economicgrowth.
The benchmark S&P/ASX 200 index
advanced 20.3 pointsto 4,502.2 at 0031 GMT, breaching the psychological 4,500 levelto hit its best intraday level since Aug. 1, 2011. The benchmarkfell 0.3 percent to 4,481.9 on Monday.
Miners gained after the price of iron ore surged 6 percentto $110.40, bringing its price recovery to 27 percent fromthree-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-capminers 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 ishelping them along. Most of these companies would have a decentmargin at these levels," said Patersons Securites senior dealerMartin Angel.
He added that new discoveries and merger activity among thesmall and mid-cap miners were also helping underpin investorinterest.
But concerns about global growth continued to cap gains. For2012, the IMF said it now expects global output to grow just 3.3percent, down from its July estimate of 3.5 percent, and China'seconomic growth is expected to weaken to 7.8 percent this year.
New Zealand's benchmark NZX 50 index
was flat at3,924.STOCKS ON THE MOVE
* Investors welcomed news that surfwear retailer BillabongInternational Ltd
, which is fending off a $700 millionprivate equity bid, has appointed respected former fashionexecutive Ian Pollard as chairman to guide a turnaround.
The shares rose as much as 3 percent to A$1.04, but remainwell below TPG's offer price of A$1.45 per share as the marketbets a deal will not eventuate.
* Shares in Seven West Media Ltd
, owner ofAustralia's top-rated free-to-air television network, surged fora second day, rising 5 percent after an analyst report on Mondayspeculated about a buyout by its largest shareholder, SevenGroup Holdings.
* Troubled retailer Mothercare Australia
asked forits shares to be suspended ahead of an announcement about a dealto put fresh capital into the baby equipment and clothing chain.
(Reporting by Victoria Thieberger; Editing by Edwina Gibbs)
((victoria.thieberger@thomsonreuters.com +61 3 92861421)(Reuters Messaging:victoria.thieberger.reuters.com@reuters.net))
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