Australian stocks open at record

By CNN's Grant Holloway

SYDNEY, Australia (CNN) -- Australia's key share market indicator, the S&P/ASX 200, has opened at a record high following a surge on Wall Street and the prospect of further interest rate cuts.

The U.S. markets set the early tone, with the Dow Jones Industrial Average up more than 3 per cent, or the 343 points, the fifth biggest gain on record.

The fifth rate cut in the United States on Wednesday gives Australia's Reserve Bank more room to lower interest rates domestically -- a move which could boost corporate profitability and increase the appeal of equities over interest-bearing investments.

By mid-morning the S&P/ASX 200 index was trading 35.1 points higher at 3415.2 points, but off its early peak of 3424.6.

Among the key stocks to improve early were media player News Corporation, up A36.6c to $A17.76 and telecom major Telstra, up A5c to $A6.58.

Resources giant BHP, which faces a shareholders meeting Friday to approve its contentious merger with UK-based miner Billiton, jumped A69c to $A22.35c.

Number two telecom operator Cable & Wireless Optus, currently subject to a $A17.2 billion takeover play from Singapore Telecommunications, was A5c higher at $A3.53.