Australia shares revive in broad rebound; NAB up 5.5pc

MELBOURNE: Australian shares rallied 2.8 percent on Wednesday in a sharp extension of this week's rebound from 2-year lows, led by banks and miners as US policy makers pledged low rates to stimulate growth.

The market had been up over 3 percent in early trade after the unprecedented volatility of the past few trading sessions, which saw the benchmark index veer from down 5.5 percent to up 1.2 percent on Tuesday alone.

"It's possible the bottom has been met but it is too early to say so. Normally when you see this sort of movement you need another two weeks to be sure the bottom has been found," said Albert Hung, chief investment officer at Alleron Investment Management.

"You never know what more bad news may be coming around the corner."

Australia's benchmark S&P/ASX 200 index was up 113.6 points at 4,148.4 by 0118 GMT. It ended 1.2 percent higher on Tuesday after a spectacular rebound from below 4,000.

New Zealand's benchmark NZX 50 index rose 3.5 percent to 3,206.2.

Australian consumer confidence fell for a fourth straight month in August to hit a 27-month low. See .

Investors now await Chinese trade data due on Wednesday. The world's No 2 economy's imports are forecast to have grown 22 percent in July, compared with 19 percent in June, while exports are seen up 17 percent. For previews, see and

"They are very important numbers people will focus on," said Hung.

Commonwealth Bank of Australia , the country's top home lender, underperformed its peers with a 1.2 percent rise to A$47.84 after its record second-half profits were accompanied by a warning that global economic turmoil was hurting business and consumer confidence, and may push funding costs higher. See .

"They are talking about a challenging environment going ahead," said Hung.

Rival National Australia Bank rose 5.5 percent to A$22.68.

BHP Billiton jumped 3.5 percent to A$38.36 while Rio Tinto rallied 4.6 percent to A$72.98 after copper prices rallied 2 percent.

Retailer Harvey Norman rose 5.3 percent after it reported like-for-like sales fell 3.9 percent in the fourth quarter, a smaller drop than seen in both of the previous two quarters.

It said furniture and bedding sales rose but electrical was extremely challenging and computer sales were affected by a cautious consumer and intense competition.

Copyright Reuters, 2011