Julia Gillard, first female PM in Australia

09:31, 24 June 2010

CANBERRA. June 24. KAZINFORM Julia Gillard became Australia's first female prime minister on Thursday when Kevin Rudd stepped down, as the Labor government sought to avoid election defeat later this year by changing leaders; Kazinform refers to China Daily.

Gillard is expected to present more of a change of leadership style than substance, but investors hope she will soften a controversial "super profits" mining tax, which is threatening $20 billion worth of investment and has rattled voters.

The Australian dollar briefly jumped after the leadership change, while shares in BHP Billiton, the world's biggest miner, and Rio Tinto rose around 2 percent, on hopes of a mining tax compromise.

"The market is going to assume that the (mining) tax is going to be amended, and hence the worst case outcome they were staring at is not going to eventuate," said Richard Schellbach an equity strategist at Citi.

Rudd become the shortest-serving Australian prime minister since 1972, with his leadership falling apart after a string of poor opinion polls showed him losing ground over recent decisions to shelve a carbon-reduction scheme and impose a new mining tax.

Government lawmakers believe Gillard has a better chance of winning back voters ahead of an expected October poll because she is a warmer personality who can sell policies more effectively; Kazinform cites China Daily.

See www.chinadaily.com.cn for full version

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