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The Reserve Bank says risks in housing and mortgage markets seem higher than average at the moment. In its financial stability review, the RBA says regulators have found some borrowers don’t have big enough buffer1 against unexpected falls income or increases in interest rates. It’s highlighted Sydney, Melbourne and Brisbane as the main areas of concern. The RBA’s calling on the big banks to maintain the strict lending standard to recently put in place under the regulator’s direction. Australia’s stocks touch the 7-week high with investors2 checking a strong lead from Wall Street. By the close, the All Ords jumped 0.7% as did the ASX 200 Index. Banking3 stocks helped drive the gains. The CBA was the best performer. Elsewhere, Iron Ore miners did well as the Asciano fell for a second day. The major resources names like BHP Billiton lost ground. Across the region, it’s the positive session. Modest gains are being seen in Japan, Hong Kong and Shanghai. The Australian dollar has fallen out of a favor, and it is down against the greenback. Rio Tinto ramped4 up its iron ore shipments during the September quarter as the mining giant completed a major expansion of its Pilbara infrastructure5. The miner shipped more than 91 million tons of iron ore during the quarter, up 17% on the same period last year. The company also maintained its full year guidance and expects to ship around 340 million tons of iron ore during the 2015 calendar year.
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