Australian shares rallied 2.1 percent on Wednesday as top miner BHP Billiton had its biggest one-day gain in 5 weeks, boosted by broad optimism after manufacturing data in China and the United States encouraged investors. The local market has started 2012 on a strong footing after last year's 14.5 percent slide, heartened by the better manufacturing data. Data showed China, the world's largest consumer of metals, avoided economic contraction in December.
The benchmark S&P/ASX 200 index added 86.6 points to 4,187.8, according to the latest data. It rose 1.1 percent on Tuesday. BHP Billiton rose 4.1 percent to A$36.22, while Rio Tinto gained 2.9 percent to A$63.15. National Australia Bank led rivals with a 1.9 percent gain to A$24.20. Insurance Australia Group, the country's top car and home insurer, underperformed with a rise of 0.6 percent.