Australia's benchmark share index rose 1.9 percent to climb back above the 4,000 level on Monday, lifted by bargain-hunting after reports that the International Monetary Fund is considering help for Italy, but turnover remained below average. Financial shares led the way higher, after being heavily sold off last week, with the big four banks all rising at least 2.3 percent and National Australia Bank up 4.2 percent.
"The banks have been pounded lately," said Austock senior client advisor Michael Heffernan. "The market is getting a bit impatient with the Europeans, frankly, and investors are starting to see value here," he added. Sentiment was bolstered by a report in Italian newspaper La Stampa suggesting the International Monetary Fund (IMF) was preparing a rescue plan worth up to 600 billion euros for Italy, more than the IMF can currently provide on its own. Shares in Rio Tinto gained 2.1 percent, even after the miner warned investors that further cracks could be emerging in global commodities markets as the economies of Europe and the US waver.
The benchmark S&P/ASX 200 index advanced 73.9 points to 4,058.2, its first positive day after six declines. Volume was around 80 percent of average, as investors burnt by volatility wait on the sidelines for a clearer trend. The index dropped 4.6 percent last week and for November, is on track to post a loss of more than 5 percent. New Zealand's benchmark NZX 50 index ended off its best levels, rising 0.2 percent to 3,218.4 points. Prime Minister John Key's National Party won a convincing victory in the country's general election on Saturday.
Qantas Airways jumped over 5 percent and finished up 3.4 percent to A$1.505 as investors shrugged off a forecast fall in first-half profits of at least 50 percent after industrial action, and focused instead on comments that bookings have returned to normal levels.
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