SYDNEY: Australian shares rebounded 1.7 percent on Tuesday on broad-based gains following two-losing sessions, as investors sought to buy stocks cheapened by the debt crisis in Greece.
The S&P/ASX 200 index rose 99.9 points to 5,574 by 0211 GMT, it’s biggest daily percentage gain in 3-1/2 months. The benchmark fell 1.1 percent for its second day of losses on Monday.
“Volatility is without doubt the major theme in equity markets at the moment,” James McGlew, Executive Director of Corporate Stockbroking, Argonaut said.
“Inspite of very weak commodity prices … the whole game today has been the pursuit of yields and safety, in particular the banks,” he added.
The index has fallen every month since March, largely dragged lower by banks and resources shares. The Greek debt sage and a slowdown in China, Australia’s No 1 trading partner, has weighed on the market.
Global markets have been volatile in recent weeks as Greece’s standoff with its creditors raised the risk of the debt-laden nation making a disorderly exit from the currency union.
Banks, which are coveted by investors for their attractive dividends, led the gains. National Australia Bank rose 2.3 percent, Westpac Bank gained 2.9 percent and Australia and New Zealand Banking Group jumped 2.1 percent.
