AUSTRALIAN stocks opened higher on Friday, led by BHP’s strong surge following a joint venture deal with Rio Tinto.

At 1015 AEST, the benchmark S&P/ASX200 was up 41.7 points, or 1.06 per cent, at 3976.3, while the broader All Ordinaries gained 42.2 points, or 1.07 per cent, to 3974.7 points.

On the Sydney Futures Exchange, the June share price index contract was 32 points higher at 3981 on a volume of 8,334 contracts.

Rio Tinto was in a trading halt, at $69.90, as the market opened, pending an announcement about the status of its planned deal with Chinese company Chinalco.

Shortly after open, Rio and rival BHP Billiton announced a joint venture covering their Western Australian mining assets and expected, they said, to realise more than $10 billion in synergy benefits.

BHP Billiton began trading at 1025 AEST, immediately rising over $2. At 1026 AEST, BHP shares were $1.69 higher, or by 4.81 per cent, at $36.80.

The major banks were mixed. Commonwealth Bank put on 78 cents, or 2.12 per cent, to $37.57, Westpac was up 27 cents at $19.41, ANZ fell 16 cents to $16.68, while National Australia Bank gained 30 cents to $22.51.

Shares in Macquarie Group climbed $1.28, or 3.54 per cent, to $37.48.

US stocks rose for the fifth time in six days following a rally in financial and energy shares.

The Dow Jones industrial average rose 74.96, or 0.86 per cent, to 8,750.24. The broader Standard & Poor’s 500 index rose 10.70, or 1.15 per cent, to 942.46, and the Nasdaq composite rose 24.10, or 1.32 per cent, to 1,850.02.

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