The S&P/ASX 200 finished 41 points higher at 5476, with the basic materials sector rising 1.2%.

The big miners led the rebound, with BHP Billiton up 1.3% to $A37.65, and Rio Tinto up 1.4% to $61.46.

It was a mixed day for other resource stocks, but Northern Manganese managed to post one of the day’s best gains, rising 38.9% to 2.5c, while Cazaly Resources jumped 25% to 7c.

In economic news, new data showed the unemployment rate remained steady at 5.8% in April, with 14,200 more people finding full-time work.



The result was better than expected and saw the Australian dollar jump to US93.81c.

Other positive moves came from Discovery Metals, which rose 13.5% to A2.5c after posting record production and lower costs at the Boseto mine in Botswana.

Matsa Resources also shrugged off yesterday’s fall to finish 26.1% higher at 29c after announcing the discovery of a high-priority nickel-copper target at the Symons Hill project in the Fraser Range.

Another big gain came from nickel and gold explorer AusQuest, which earned a price query from the Australian Stock Exchange after rising 30.8% to 1.7c.

Elsewhere Boart Longyear dropped 20.7% to 23c after it posted a 47% drop in revenue for the March quarter.

Explorer 3D Resources also copped a 11.8% fall to 1.5c, while Hudson Resources lost 16.7% to finish at 5c.

In other developments Victory Mines entered a trading halt pending new information on its proposed takeover of unlisted South American Tin.

FeOre also went on hold pending updates on the sale of its subsidiary Topone Star Investments, which holds an 80% interest in the Ereeny and Dartsagt iron ore projects in Mongolia.

The company first announced plans to sell the firm in January but had to push back the timetable for sealing the deal.