PERTH: Australian stocks have rebounded from China-inspired declines, with the miners leading the local market upwards as the Asian giant’s exchanges appeared to have stabilise following Monday’s huge dives.
At the 4.15pm (AEST) official market close, the benchmark S&P/ASX200 was up 39.5 points, or 0.71 per cent, to 5624.2, while the broader All Ordinaries index rose 38.6 points, or 0.69 per cent, to 5609.6.
IG chief market strategist Chris Weston said that while Chinese stocks were down for a third straight day “volatility has clearly subsided”.
The Australian market was the outperformer in the region, he said, with most of Asia waiting on tonight’s outcome from the US Federal Reserve’s Open Market Committee meeting.
“The key from here will be whether the ASX200 can convincingly move above the 5700 level, and as we saw on July 21 the market seems hesitant to find a new higher range,” he said.
The local market today benefited from strong offshore leads after Wall Street led the way out of the China-inspired mire, snapping a five-day losing streak overnight.
Furthermore, the iron ore price posted a third straight positive session in offshore trade, hitting its highest points in a month, despite oversupply risks being seen on the horizon.
