The Australian share market has rebounded on expectations of monetary easing in China, finishing the session strongly and posting an almost nine per cent gain for the year’s first three months.
China’s central bank chief has said the country has room to act on both quantitative measures and interest rates, while low local interest rates and high dividends are luring investors.
CMC Markets analyst Michael McCarthy said the local bourse had finished the quarter almost nine per cent higher after a weak day on Monday.
“We’re close to recouping all of yesterday’s losses,” Mr McCarthy said.
“There’s no surprises that the best performers today were the hardest hit yesterday.”
The ASX 200’s 8.88 gain for the first three months of 2015 is its best quarterly performance since the three months to September 30, 2009.
For Tuesday, materials rose almost two per cent and energy rose 1.25 per cent.
“There’s the possibility these stocks are in value territory,” Mr McCarthy said.
Mining giant BHP Billiton rose 93 cents, or 3.1 per cent, to $31.03, Rio Tinto was up $1.38, or 2.5 per cent, at $57.23 and Fortescue Metals had gained 3.5 cents, or 1.8 per cent, to $1.96.
In the energy sector, Woodside Petroleum was up 52 cents, or 1.5 per cent, at $34.52 and Santos was 12 cents higher at $7.14.
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 51 cents higher at $34.95.
Commonwealth Bank had gained 30 cents to $93.40, National Australia Bank was up 23 cents at $38.55, ANZ had lifted 28 cents to $38.55 and Westpac was 25 cents firmer at $39.38.
Telstra was up 51 cents at $6.31.
Vitamins maker Blackmores was up $5.53, or 11.3 per cent, at $54.55 after forecasting another strong rise in profit.
KEY FACTS
* At the close on Tuesday, the benchmark S&P/ASX200 index was 45.4 points, or 0.78 per cent, higher at 5,891.5.
* The broader All Ordinaries index was up 45.6 points, or 0.78 per cent, at 5,861.9, according to preliminary figures.
* The June share price index futures contract was 35 points higher at 5,886, with 26,907 contracts traded.
* National turnover was 1.5 billion securities worth $5.2 billion.
