Better than expected economic data from China has fuelled the share market’s largest one day rally in more than three months.
Money flowed back into the market’s two largest sectors, partly due to the latest measure of manufacturing activity in China, Australian Stock Report senior equity analyst Benny Sada said.
“The miners and the banks have enjoyed a strong turnaround today and that has helped lift local sentiment,” he said.
The ASX200 index rose 0.98 per cent, its largest one day gain since early July.
“Better manufacturing data has helped allay concerns about the Chinese economy and we’ve seen the miners climb on the back of that,” Mr Sada said.
Concerns had been mounting about China’s economy after recent disappointing data, which had weighed on commodity prices and local mining stocks.
After the market’s heavy fall in recent weeks, bargain hunters were also helping boost the financials, Mr Sada said.
Commonwealth Bank gained 85 cents to $77.30, ANZ rose 44 cents to $31.65, Westpac climbed 37 cents to $32.77, and National Australia Bank added 41 cents to $33.51.
In the mining sector, Rio Tinto added 15 cents to $60.20, BHP Billiton gained nine cents to $34.95 and Fortescue Metals was up eight cents at $3.66.
Gold miner Newcrest was another strong performer, adding 41 cents to $10.36.
Internet provider TPG Telecom advanced 40 cents to $7 after the company forecast earnings growth of 25 per cent over the next year.
Agricultural chemicals and seeds provider Nufarm rose 49 cents to $4.52 after it said it was confident of lifting underlying earnings, despite a 53 per cent slide in its net profit due to restructuring costs.
KEY FACTS
* At 1615 AEST on Tuesday, the benchmark S&P/ASX200 index was up 52.7 points, or 0.98 per cent, at 5,415.7 points.
* The broader All Ordinaries index was up 47.9 points, or 0.89 per cent, at 5,416.1 points.
* The December share price index futures contract was up 48 points at 5,408 points, with 32,892 contracts traded.
* National turnover was 2.19 billion securities worth $5.6 billion.
