The Australian share market has broken its eight-day losing streak thanks to better-than-expected Chinese trade figures.
The data showed China’s December exports fell 1.4 per cent from a year earlier, while imports slid 7.6 per cent.
Both figures were much better than economists’ expectations of a 8.0 per cent fall in exports and a 11.5 per cent fall in imports.
Bell Direct equities analyst Julia Lee said the stronger Chinese data combined with bargain hunting and the fact the market had been oversold in the past eight sessions were behind the Australian bourse’s rebound.
“The data beat expectations and have given the market a boost in confidence with risk assets back in favour,” she said.
“However, concerns around Chinese growth, the revaluation of the Chinese currency and volatility in asset classes linked to problems in credit markets and the amount of credit in China will continue to worry investors in 2016.”
Leading the gains were the retailers with Myer up four cents, or 3.76 per cent, at $1.105, JB Hi-Fi up $1.09, or 5.23 per cent, at $21.95 and The Reject Shop 32 cents higher, or 3.1 per cent, at $10.63.
Shares in vacuum retailer Godfreys have tumbled 45 cents, or 28.3 per cent, to $1.14 after it slashed its full year profit guidance.
Energy stocks have enjoyed a rally with Woodside Petroleum up 36 cents, 1.33 per cent, at $27.44 and Santos up 16 cents, or 5.42 per cent, at $3.11.
The world’s biggest miner BHP Billiton closed 24 cents lower at $14.77, while Rio Tinto gained 40 cents to $39.55.
KEY FACTS:
* At 1615 AEDT on Wednesday, the benchmark S&P/ASX200 index was up 62.3 points, or 1.26 per cent, at 4,987.4 points.
* The broader All Ordinaries index was up 59.4 points, or 1.19 per cent, at 5,041.6 points.
* The March share price index futures contract was up 60 points at 4,940 points, with 34,180 contracts traded.
* National turnover was 1.9 billion securities traded worth $4.9 billion.
