Australian stocks climb 2.65pc

SYDNEY: Australian stocks soared 2.65 percent on Wednesday as they rebounded from steep losses the previous day, buoyed by better-than-expected gross domestic product figures.

At the close, the benchmark S&P/ASX 200 was 107.9 points higher at 4,183.4.

The Australian dollar was also firmer at 106.00 US cents, up from 105.27 early in the day before data showed Australia's economy rebounded strongly in the June quarter with 1.2 percent growth.

The figures beat expectations and reversed a contraction in the previous three months.

"After US markets fell much less than expected overnight the local market has been playing catch up today to negate some of yesterday's overselling," said IG Markets analyst Ben Potter.

"A stronger-than-expected read on Q2 GDP has also helped boost local sentiment."

Bell Potter client adviser Greg McPherson said volumes were below average and while the growth numbers were positive, news from offshore markets was still the key driver.

"The local news has just given everyone a bit of heart," he said.

"But I still don't think that, because of the global issues, there's any conviction to put your money where your mouth is."

Among major companies, BHP jumped 3.66 percent and Rio Tinto was 3.20 percent higher. The banks also gained with Commonwealth putting on 3.28 percent and Westpac up 2.92 percent.

Copyright AFP (Agence France-Presse), 2011