THE Australian share market is up sharply as bargain hunters plough back in.
Despite major sell-offs in the US and UK overnight, local investors had been buoyed by the recovering in S&P 500 in after-hours trading, CommSec market analyst Tom Piotrowski said.
“The test will be in that window that proceeds the opening of the Chinese market,” Mr Piotrowski said.
“If we get a sense that the rest of the region is going to get on board with this recovery then we’ll stand a better chance of sustaining the improvement that we’re seeing at the moment.”
The Chinese market will open at 12.30pm.
The benchmark ASX 200 index and the broader All Ordinaries are up 1.6 per cent and 1.5 per cent respectively in morning trade.
The Dow Jones Industrial Average closed 1.6 per cent lower in a volatile session, and London’s benchmark FTSE 100 index closed down 3.5 per cent.
CMC Markets chief market strategist Michael McCarthy said the question was whether the deep slide in some markets overnight marked the beginning of a much deeper problem.
“The next 24 hours are crucial to the near and medium term outlook for markets,” he said in a research note.
Finance and resource stocks led the gains in early morning trade, with Insurance Australia Group up 20c at $5.17, Rio Tinto up $1.25 to $39.00 and Origin Energy up 9c at $3.55.
In the financial sector, Macquarie Group was up $1.57 at $73.92. The big four banks were all up, with Commonwealth Bank up $1.20 at $78.81, ANZ up 24c at $23.74, and Westpac up 44c at $30.50.
National Australia Bank is 28c higher at $27.02.
Energy giant Woodside Petroleum is also getting a boost, up 8c to $25.45, despite posting a sharp fall in revenue due to lower oil and gas prices.
AAP
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