The Australian market reversed an early slide to climb higher after Monday’s big losses.
Here’s the scoreboard:
- S&P ASX 200: 5,137.30 +136.02 +2.72%
- All Ordinaries: 5,143.80 +129.62 +2.59%
- AUD/USD: 0.7191 +0.0035 +0.49%
The 2.7% gain is the biggest percentage gain since October 2011.
Local investors ignored a sharply weaker Wall Street where the S&P 500 lost 3.9% and free falling socks in China. The local market initially fell but bargain hunters dived in, sending stocks higher.
Nine out of ten sectors were higher, clawing back some of the 4.09% loss yeterday. The local rally was led by a 3.6% rise among financial stocks, which were sold down heavily on Monday.
The market added about $44 billion in market capitalisation after losing $68 billion on Monday.
Westpac gained 4.92% to $30.90 after losing 6% Monday. The NAB gained 4.65% to $31.09, Commonwealth 3.6% to $75.08 and the ANZ 4.1% to $27.99.
Other financials were also doing well. Macquarie Bank was up 5.8% to $74.41 and AMP 2.24% to $5.93.
BHP, which is due to release its annual results late today, was up 1.97% to $23.34 after losing 5% yesterday. Fortescue was up 11.1% to $1.815 today after dropping 14.65%.
The top stories for Tuesday:
1. Big dips and steep rises. A chart showing the ASX having one of its wildest days on record.
2. Market turmoil. This is just a glimpse of a much bigger crash to come, according to analyst and noted market bear Gerard Minack.
3. Pacific Brands has narrowed its losses and expects to get back to paying dividends in 2016 after reporting strong sales growth in its Bonds and Sheriden brands.
5. The Aussie green whistle. Medical Developments International, the company behind Australia’s green whistle pain relief inhaler, is trying to get the device into the US market.
6. BBY millions. A win in the NSW Supreme Court by a group of traders could be the breakthrough needed to unlock millions of dollars from the trading accounts of failed stockbroker BBY.