The share market has bounced back on expectations of monetary easing in China.
China’s central bank chief has said that China has room to act on both quantitative measures and interest rates.
That prompted a strong session on Wall Street and local stocks have followed, despite weakness in commodity prices, reversing Monday’s steep losses.
“Global markets did very well overnight partly on the back of speculation of stimulus in China and merger reports in the US particularly in the health care and IT sectors,” CommSec market analyst Steven Daghlian said.
“Gains on the Australian share market are across the board, including the miners and energy players.
“Both of those sectors were hit hard yesterday, however the energy sector has a long way to go to make up for yesterday’s falls.”
BHP Billiton had gained 96 cents, or 3.2 per cent, to $31.06, Rio Tinto was up $1.37, or 2.5 per cent, at $57.22 and Fortescue Metals had gained four cents, or 2.1 per cent, to $1.965.
In the oil and gas sector, Woodside Petroleum was up 72 cents, or 2.1 per cent, at $34.72 and Santos was seven cents higher at $7.09.
Caltex Australia had recovered some of the ground lost after US energy giant Chevron sold its 50 per cent stake in the fuel distributor, with its shares 56 cents higher at $35.00.
Commonwealth had gained $1.17 to $94.27, National Australia Bank was up 37 cents at $38.69, ANZ had lifted 44 cents to $36.80 and Westpac was 51.5 cents firmer at $39.645.
Telstra was up six cents at $6.35.
Penfolds maker Treasury Wine Estates was four cents stronger at $5.20 after announcing it will close a wine processing business and put four wineries up for sale in a raft of major changes.
Vitamins maker Blackmores was up $4.94, or 10 per cent, at $53.96 after forecasting another strong rise in profit.
KEY FACTS
* At 1200 AEDT on Tuesday, the benchmark S&P/ASX200 index was up 82.5 points, or 1.41 per cent, at 5,928.6 points.
* The broader All Ordinaries index was up 78.9 points, or 1.36 per cent, at 5,895.2 points.
* The June share price index futures contract was up 76 points at 5,927 points, with 13,169 contracts traded.
* National turnover was 542 million securities worth $1.6 billion.
