SYDNEY: Australian shares gained 2.64 percent on Thursday after six of the world's major central banks moved to ease the flow of funds to financial institutions.
At the close, the benchmark S&P/ASX200 index was up 108.8 points at 4,228.6, but off its highs.
It followed the central banks of the United States, the eurozone, Britain, Japan, Canada and Switzerland making cheaper US dollars available to commercial banks facing a lack of liquidity.
They also made arrangements to lend each other their various currencies if needed, while China cut the amount of cash that its banks must set aside as reserves.
"With such strong offshore leads, gains for the day are broad based but led by the materials sector, which is benefitting from a huge jump in overnight commodity prices," said IG Markets analyst Cameron Peacock.
The risk-based Australian dollar also surged on the news, gaining nearly three US cents. It was trading at 102.54 US cents late in the session, up from 99.92 US cents late Wednesday.
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