The Australian market has bounced more than 2 percent on Wednesday, ending a six session losing streak as traders pick up some bargains and position ahead of the U.S. Federal Reserve's policy decision Thursday morning.
At the close on Wednesday, the benchmark S&P/ASX200 index was 118.8 points, or 2.42 percent, higher at 5,028.4, while the broader All Ordinaries index was up 114.8 points, or 2.31 percent, at 5,078.7.
The Australian market responded to offshore leads in Europe and the United States on Wednesday which relished the bounce in oil and strong U.S. inflation figures, 2.0 percent year-on-year, strengthening the case for a central bank rate hike, IG market analyst Angus Nicholson said.
Investors piled back into Australia's beaten-down equities following a period of prolonged selling, picking up bargains in their quest for yield in Australia's finances and resources stocks.
ANZ is up 2.68 percent, the Commonwealth Bank of Australia boosted 2.89 percent, the National Australia Bank added 2.60 percent and Westpac bounced 2.81 percent.
Gold miner Newcrest rose 1.37 percent, Rio Tinto is 3.02 percent stronger while rival BHP rallied 5.59 percent on assurances of further capital cuts to their U.S. oil projects and continued progressive dividend policy.
Oil Search lifted 4.71 percent, Santos is 5.18 percent higher and Woodside Petroleum climbed 3.42 percent. Wesfarmers and Woolworths are 4.02 percent and 3.42 percent stronger respectively. Qantas gained 2.98 percent and Telstra is up 1.91 percent.
Latest comments