Australian shares jumped 1% on Tuesday tracking global equities, with miners and financials leading gains, as active steps to rescue distressed banks eased fears of a banking crisis and boosted sentiment.
The S&P/ASX 200 index jumped 1.06% to 6,971.40 by 2346 GMT, its biggest intraday gain since Jan. 12. The benchmark ended 1.4% lower on Monday.
UBS on Sunday agreed to buy 167-year-old Credit Suisse for $3.23 billion in a merger engineered by Swiss authorities to avoid more turmoil in the banking group.
Also, top central banks moved over the weekend to bolster the flow of cash around the world.
All eyes are now on the US Federal Reserve’s two-day monetary policy meeting later this week, where economists are widely expecting a 25 basis point interest rate hike, according to a Reuters Poll.
Australia shares slide as bank contagion fears persist
In Sydney, miners jumped 1.5%, with sector majors Fortescue Metals Group, Rio Tinto and BHP Group adding between 1.6% and 1.7%. Financials advanced 1.4%, tracking a global rally in banking stocks.
All the ‘big four’ banks jumped between 0.5% and 1.2%. National Australia Bank said its Chief Financial Officer Gary Lennon will retire on Oct. 1, after seven years in the role.
Gold stocks, on the other hand, dipped 1.6% after bullion prices retreated from their highest level in a year.
Newcrest Mining and Northern Star Resources fell 0.8% and 2.6%, respectively. New Hope Corporation jumped 6.1% to become the top gainer on the bourse, after the coal miner’s reported first-half earnings more than doubled.
Mincor Resources jumped nearly 40%, after receiving a buyout offer from billionaire Andrew Forrest-backed Wyloo Metals’ unit, valuing the nickel miner at A$750.3 million ($503.98 million).
Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index was flat at 11,567.47.
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