The S&P/ASX 200 finished 55 points higher at 5479, with the basic materials sector up 1.7%.

BHP Billiton rose healthy 1.3% to $A37.65 and Rio Tinto was up 2.5% to $60.96.

Resource stocks were buoyed by better than expected data on the Chinese economy, with HSBC’s flash manufacturing purchasing managers’ index rebounding strongly to 49.7 this month, up from 48.1 in April.

HSBC chief China economist Hongbin Qu said the improvement was broad-based but some weakness remained.

“Some tentative signs of stabilisation are emerging, partly as a result of the recent mini-stimulus measures and lower borrowing costs,” he said.

“But downside risks to growth remain, particularly as the property market continues to cool.

“We think more policy easing is needed to put a floor under growth in the coming months.”

Big moves on the local market included Botswana Metals, which rose 60% to 1.6c on news joint venture partner BCL would start drilling at the Maibele North nickel prospect in Botswana.

Avalon Minerals was also up 33.2% to 1.2c after establishing measured resources at its Viscaria copper-iron project in Sweden.

Other winners included Axiom Mining, which emerged from a trading halt 21.3% higher at 1.7c after foreshadowing a positive end to legal proceedings in the Solomon Islands.

Also riding high was InterMet Resources, which jumped 22.1% to 1.1c after exercising its option to acquire US-based technology firm 1-Page Company.

Elsewhere, Pluton Resources gained 12.9% to 3.5c on drilling results from Cockatoo Island and news its acquisition of Wise Energy Group’s JV interests in the project were progressing as planned.

On the negative side Kupang Resources continued to slide and finished 13.9% lower at 3.1c.

Companies entering trading halts included Elementos, which went on hold pending clarification on a production target in its Cleveland tin mine pre-feasibility study.

TNG also rose 11% to 11c before going into suspension pending an announcement on its Mount Peake vanadium-titanium-iron project in the Northern Territory.