The Aussie cash market rebounded from early losses on Tuesday with gains Australias banks offsetting energy and resources losses.
At the close on Tuesday, the benchmark S&P/ASX200 index was 22. 1 points, or 0.42 per cent higher at 5,342.8, while the broader All Ordinaries index was up 16.1 points, or 0.30 per cent, at 5, 403.9.
Australian energy and resources stocks were heavily sold on Tuesday from falling commodity prices as early indications appear Chinese authorities wont continue stimulus into the second quarter, IG market analyst Angus Nicholson said.
Recent Chinese activity indicators appear to be levelling off, while lower manufacturing PMIs, decline in import growth and unmoved CPI inflation, released Tuesday, are all providing fundamental support to the pullback seen in a range of commodity prices, Nicholson said.
The Australian markets second pillar did the heavy lifting on Tuesday as investors continued their search for yield, with the banks in particular benefiting from predictions of further cuts to the Reserve Bank of Australia cash rate, already at the record low 1.75 percent.
ANZ added 1.31 percent, the Commonwealth Bank of Australia surged 2.93 percent, the National Australia Bank lifted 1.65 percent, and Westpac rose 0.61 percent. BHP Billiton shed 3.15 percent, rival Rio Tinto lost 2.87 percent, and gold miner Newcrest is 1.49 percent weaker.
Oil Search slid 1.61 percent, Santos dove 3.59 percent and Woodside Petroleum fell 3.29 percent. Woolworths gained 0.46 percent however rival Wesfarmers slipped 0.02 percent. Qantas rallied 2.40 percent, and Telstra is up 0.89 percent.
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