Finance Australian shares have biggest rise since March

Australian shares have biggest rise since March

The ASX rebounded from Monday's big fall and almost regained its losses. Photo: AAP
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Investors have had their best day on the ASX since March and regained most of Monday’s losses after US financial leaders eased concerns about higher interest rates.

The benchmark S&P/ASX200 index closed up 1.48 per cent on Tuesday and the heavyweight categories of financials and materials shares rose by about two per cent.

Energy and property gained two per cent or more.

The ASX200 followed US markets’ direction and closed higher by 106.9 points, or 1.48 per cent, to 7342.2.

The index is little more than 40 points short of its record close of last week.

The All Ordinaries closed up by 107.5 points, or 1.44 per cent, to 7592.7.

Tribecca Investment Partners portfolio manager Jun Bei Liu said Monday’s selling, which caused the ASX to lose 1.81 per cent, was unjust.

“I think the market overreacted yesterday and today was catch-up,” she said.

“Equity markets look strong over the next six or 12 months.”

Like investors, US Federal Reserve chair Jerome Powell reacted to some of his peers who last week signalled they expected rates to increase in 2023.

Mr Powell outlined why the recent jump in inflation to a 13-year high would be temporary.

In notes for his speech to US Congress on Wednesday, the financial leader said the surge was created by steep price drops last year, higher petrol prices and rapid increases in consumer spending.

He remained confident inflation would drop to the central bank’s long-term goal of two per cent.

The US dollar remained at elevated levels after the rate risk talk.

The Aussie dollar was buying 75 US cents for much of the day after trading about 77 US cents early last week.

Meanwhile, Sydneysiders are hoping to avoid a coronavirus lockdown after 10 infections were reported.

The outbreak, which was traced to a driver working with international travellers, has prompted mask-wearing rules for all residents.

On the ASX, Soul Pattinson shares closed up 0.83 per cent to $30.50 after it agreed to buy all the remaining shares in rival investment group Milton Corporation.

The deal will create a $10 billion organisation by September if shareholders and courts approve.

Soul Pattinson is offering $6 per share. Independent Milton directors recommended shareholders accept.

Milton shares were higher by 16 per cent to $5.80.

Miner IGO gained some regulatory approvals needed for its joint venture with Tianqi Lithium Corporation.

The companies aim to finalise the creation of Tianqi Lithium Energy Australia by June 30.

IGO shares were up 6.21 per cent to $7.52.

The big miners also recorded strong gains.

BHP rose 2.35 per cent to $46.68, Fortescue gained 2.61 per cent to $22.38 and Rio Tinto climbed 1.62 per cent to $121.99.

Banks performed almost as well.

ANZ increased by 2.14 per cent to $28.68, the Commonwealth Bank surged by 2.21 per cent to $100.23, NAB was better by 1.17 per cent to $26.73 and Westpac improved by 1.76 per cent to $26.61.

Bank of Queensland rose 5.47 per cent to $9.26 after sliding about five per cent on Monday.

Healthcare was the only industry category lower. CSL fell 1.47 per cent to $300.52.

On Wednesday, Australia’s international trade balance for May will be revealed by the Australian Bureau of Statistics.

The Australian dollar was buying 75.13 US cents at 1710 AEST, higher from 75.01 US cents at Monday’s close.


  • The benchmark S&P/ASX200 index closed higher by 106.9 points, or 1.48 per cent, to 7342.2 on Tuesday.
  • * The All Ordinaries closed up by 107.5 points, or 1.44 per cent, to 7592.7.
  • * At 1710 AEST, the SPI200 futures index was lower by eight points, or 0.11 per cent, to 7245.


One Australian dollar buys:

  • 75.13 US cents, from 75.01 cents on Monday
  • 82.92 Japanese yen, from 82.31 yen
  • 63.13 Euro cents, from 63.12 cents
  • 54.09 British pence, from 54.23 pence
  • 107.61 NZ cents, from 107.73 cents.