MELBOURNE: Australian shares rose 0.9 percent on Tuesday, outpacing a modest rise on Wall Street, with investors starting to latch on to increasing evidence of a US economic recovery.
The local market was playing catch-up after slipping on Monday, helped by a positive outlook for metal demand from top US aluminium producer Alcoa Inc that defied gloom among its peers.
The benchmark S&P/ASX 200 index jumped 37.5 points to 4,142.9 at 0255 GMT, recouping losses from the past two sessions.
New Zealand's benchmark NZX 50 index slipped 0.4 percent to 3,235.8.
STOCKS ON THE MOVE
Biotech firm Benitec Biopharma jumped 18 percent after announcing that Phase I clinical trials by US-based Gradalis of a vaccine for cancer patients using Benitec's gene-silencing technology showed the vaccine was safe.
The results were published in the journal Molecular Therapy, Benitec said.
Spotless Group fell as much as 5 percent after its private equity suitor, Pacific Equity Partners, said its last offer of A$711 million was very attractive, balking at the minimum A$743 million that the cleaning services group wants.
Spotless last traded down 1.3 percent at A$2.34, valuing the group at A$621 million.
Alumina Ltd jumped 5 percent to A$1.15 after its partner Alcoa gave a positive outlook for global demand for aluminium, particularly in the aerospace and automotive sectors.
Perseus Mining jumped 7 percent to A$2.73 after announcing it had successfully started commercial production at its Edikan gold mine in Ghana, producing 13,510 ounces of gold in December.
Pacific Brands, the top gainer, leapt as much as 20 percent and last traded up 14 percent at A$0.64, valuing the Bonds underwear maker at A$580 million, after saying it was in talks on a buyout approach from US private equity giant KKR & Co.
A newspaper said an offer could be worth around A$600 million ($614 million).
Insurance Australia Group, Australia's top car and home insurer, slid 3.1 percent to A$2.82 after warning that claims from hailstorms in Victoria in December would push first-half net natural peril claim costs well above its allowance.
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