On the back of record highs for gold, copper and nickel, the Australian stock market has overcome concerns about higher oil prices, consumer debt and real estate slowdown.

The Australian iShare ETF (EWA) started the year slowly as international fund flows pulled back but has rebounded nicely up 9.69% in the last 30 days and 13.55% for the year.

The perception that Australia is nothing but a commodity and China play is wrongheaded. The Australian economy is well diversified with 5% of GDP attributed to mining, 5% to tourism and 80% to services. It also represents the third largest stock market in the region and is a leading regional financial center.

While labor rigidities and the growth of government could slow down Australia