KEY POINTS:
SYDNEY - The Australian stock market clawed back almost all of its losses by the close of trading today, following yesterday's big rout, led by strong gains in mining shares and a recovery in the financial sector.
At the 1615 AEST close, the benchmark S&P/ASX200 was up 194.1
points, or 4.22 per cent, at 4794.6, while the broader All Ordinaries gained 183.2 points, or 3.96 per cent, to 4814.5.
The December share price index futures contract was 145 points higher at 4830, on a volume of 35,871 contracts.
The local market followed a strong lead from Wall Street overnight, which was boosted by optimism that a proposed US$700 billion bailout of financial firms struggling under toxic mortgage debt could pass upon another vote on the deal on Thursday US time.
"It's a US-led rally from last night," ABN Amro Morgans private client adviser Trent Muller said.
"But a lot of people are a bit nervous that the rally last night was a bit artificial."
Mr Muller said the big miners and the financial sector were the bid gainers on the day.
"Our market has been led by both BHP and Rio in particular, and the financials, with the likes of Westpac, CBA and NAB doing very well.
"Obviously BHP and Rio are the main topics of discussion today."
The Australian Competition and Consumer Competition (ACCC) today said it will not oppose BHP Billiton's proposed takeover of rival Rio Tinto because it is unlikely to lessen competition.
BHP Billion gained $1.75, or 5.65 per cent, to $32.75, while takeover target Rio Tinto added $10.50, or 12.43 per cent, to $95.00, after
In the financial sector, Commonwealth Bank picked up $2.44, or 5.26 per cent, to $44.86, ANZ Banking Group added 55 cents or 2.93 per cent to $19.30, Westpac lifted $1.77, or 8.24 per cent, to $23.25 and its takeover target St George Bank added $1.89, or 6.61 per cent, to $30.49.
National Australia Bank picked up $1.44, or 5.94 per cent, to $25.70.
Yesterday, the local market fell 4.3 per cent, after US markets fell almost seven per cent when the US House of Representatives voted down the bailout package proposed by the US government.
But US markets rose on Tuesday on renewed hopes the package would eventually pass after another vote.
The Dow Jones Industrial Average leapt 485.21 points, or 4.68 per cent, to close at 10,850.66.
Spot gold was trading in Sydney at US$879.90 an ounce at 1630 AEST, down US$23.20 on yesterday's close of US$903.10.
In the local gold sector, Newcrest Mining was up 77 cents at $28.40, Newmont Mining fell two cents to $4.88 and Lihir Gold lost five cents, or 1.79 per cent, to $2.75.
Agribusiness AWB said today that all three class actions against the company in the US arising from the United Nations oil-for-food kickbacks scandal had now been dismissed.
AWB lifted 22 cents, or 7.91 per cent, to $3.00.
Also making news, explosives, paint and chemicals maker Orica says its plan to demerge its consumer products business is on track to proceed.
Orica lifted $1.20, or 5.73 per cent, to $22.15.
Overnight, light sweet crude for November delivery rose US$4.27 to settle at US$100.64 a barrel overnight on the New York Mercantile Exchange.
But the local energy sector was mixed, with Woodside Petroleum up $1.20, or 2.35 per cent, at $52.20, Oil Search gaining 18 cents, or 3.21 per cent, to $5.78, while Santos lost five cents to $19.05.
In media, Fairfax fell two cents to $2.62, while Consolidated Media added four cents, or 1.63 per cent, to $2.50.
News Corporation gave up 13 cents to $15.17, while its non-voting scrip increased by 18 cents to $14.88.
Telstra Corporation said today its online advertising revenue has grown by more than 50 per cent since the start of calendar 2008 amid a weaker advertising market.
Telstra Corp added ten cents to $4.28 and Optus-owner Singapore Telecommunications gained 12 cents to $2.81.
Qantas firmed 12 cents to $3.25 and Virgin Blue added five cents, or 15.87 per cent, to 36.5 cents.
The most traded stock by volume was Emeco Holdings, with 29.53 million units changing hands worth $24.08 million.
Its shares picked up one cent, or 1.25 per cent, to 81 cents.
Preliminary market turnover was 855.01 million shares, valued at $3.98 billion, with 638 stocks up, 381 down and 292 unchanged.
- AAP