Australian stocks up 2.30pc at the open

SYDNEY: Australian stocks opened 2.30 percent higher on Friday, helped by a European Central Bank rate cut and Greece's decision to step back from its plan to hold a referendum on a European rescue package.

The benchmark S&P/ASX 200 gained 95.6 points in the first 15 minutes of trade to 4,267.4 after the ECB unexpectedly cut rates a quarter point to 1.25 percent.

Also boosting sentiment was Greek Prime Minister George Papandreou backtracking from a plan to hold a referendum which had incensed European leaders trying to organise a rescue plan for the debt-ridden nation, analysts said.

The European rate cut also helped the Australian dollar, which was trading at 103.93 US cents early in the session from 102.48 cents on Thursday.