The share market has followed other Asian markets higher as investors continue to take advantage of bargains created by Monday’s huge fall.
It was another volatile session however, with the market falling around one per cent in early trade due to a fall on Wall Street.
Shares quickly recovered some of that ground and then moved back into positive territory around mid-afternoon as the Shanghai Composite Index posted strong gains.
“The market is moving higher in line with the Chinese market,” IG chief market strategist Chris Weston said.
“A certain calm has descended on Asian markets today, allowing traders to catch a much needed breath.”
A gain of 0.7 per cent follows a 2.6 per cent rise on Tuesday, with Wednesday’s move driven by buying in the sectors worst hit by Monday’s turmoil – banking, energy and mining.
Mr Weston said the next key event for world markets is a public appearance in the US on Thursday, Australian time, by New York Federal Reserve president Bill Dudley, whose comments will be scrutinised for indications of the timing of a US central bank rate rise.
He is speaking ahead of a weekend Federal Reserve meeting, at which vice chair Stanley Fischer will front the media.
“Mr Dudley and his colleague Stanley Fischer could be the catalyst for better days for the bulls as it give us a chance to see the world through the eyes of the Fed,” Mr Weston said.
“It should provide much needed clarity for a market that is desperately searching for answers.”
Among the big banks, Commonwealth added $1.05 to $76.13, Westpac gained 38 cents to $31.28, NAB rose 30 cents to $31.39 and ANZ edged eight cents higher to $28.07.
BHP Billiton jumped 60 cents to $23.94 despite its significant fall in annual profit, Rio Tinto gained 44 cents to $48.89 while Fortescue Metals dropped one cent to $1.805.
In energy, Woodside gained 77 cents to $30.97 and Oil Search added 29 cents to $6.19.
Health products maker Blackmores closed at $100 as its shares gained a further 10.6 per cent, or $9.56, following Tuesday’s report of a record annual profit.
KEY FACTS
* At the close on Wednesday, the benchmark S&P/ASX200 index was up 35.5 points, or 0.69 per cent, at 5,172.8 points.
* The broader All Ordinaries index was up 35.1 points, or 0.68 per cent, at 5,178.9 points.
* The September share price index futures contract was 10 points higher at 5,137, with 73,453 contracts traded.
* National turnover was 2.4 billion securities worth $8.7 billion.
