Australian shares jump

Australian stocks jumped 1.3 percent on Tuesday, buoyed by sharp rises in banks and miners and a $10 billion bid for top brewer Foster's Group. Foster's rejected a long-expected bid from global brewing giant SABMiller, triggering a 13 percent rise in its shares as investors bet SABMiller would raise its offer. That helped lift sentiment in the market, on the view that any corporate activity is a sign of confidence.
"I think today was a little wake-up call for those people who are short equities," said George Clapham, head of equities at Arnhem Investment Management. The Australian market has been held back by a range of concerns, including the Greek debt crisis, a US growth slowdown, Chinese demand, a strong Aussie dollar, domestic regulatory uncertainty, and a looming rate hike.
But on earnings forecasts, the market is considered cheap, so strategists think it is just a matter of time before it turns around. The benchmark S&P/ASX 200 index gained 56.5 points to close at 4,508.2, more than recouping Monday's losses. New Zealand's benchmark NZX 50 index lost 7.9 points to close at 3,459.6. Foster's Group, the day's most active stock, soared 13 percent to close at A$5.14 after rebuffing a A$9.5 billion ($10 billion) take-over offer from global brewing giant SABMiller. Foster's wine spin-off Treasury Wine Estates leapt 4.2 percent to A$3.45, as the bid for Foster's reignited hopes of a bid emerging for the wine business, eyed last year by private equity firms.