Reuters: Hot Stocks: Australia shares rebound 1.8 pct on U.S. rally, China liquidity support

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Australia shares rebound 1.8 pct on U.S. rally, China liquidity support Jun 26th 2013, 01:28 Tue Jun 25, 2013 9:28pm EDT (Adds stocks movement, analyst comments) SYDNEY, June 26 (Reuters) - Australian shares snapped a four-day decline to rise 1.8 percent in late morning trade on Wednesday, after Wall Street rallied on improved investment and housing data, and China's central bank moved to calm fears of a credit crunch. The S&P/ASX 200 index added 85.0 points to 4,741.0 by 0114 GMT. The benchmark fell 0.3 percent on Tuesday. China's central bank moved late on Tuesday to assure markets it would provide cash to institutions that need it following days of turmoil that pushed shares to their lowest level in more than four years on fears of a banking crisis. "Obviously it's a relief in markets globally," said Martin Lakos, division director at Macquarie Private Wealth in Sydney. "And ongoing positive data out of US...comes at a time when the market is very oversold." Global miners BHP Billiton Ltd and Rio Tinto Ltd jumped 2.4 percent and 2.9 percent respectively after commodities prices recovered on easing fears about China's liquidity problem. Banks also joined the rebound, with top lender Commonwealth Bank of Australia rising 1.3 percent. Australian stocks have been hit hard in recent sessions by concerns about the U.S. Federal Reserve's plan to cut back on its massive stimulus, with China's recent credit crunch adding to investor fears. Despite the easing selling pressure, some analysts said that there is still underlying concerns over the surge in volatility in Chinese interbank lending rates. "While the People's Bank of China has made it clear the recent surge in volatility of interbank lending rates is intentional, the market is paranoid that there could be more going on behind the scenes," said Rivkin's global analyst Tim Radford in a note. New Zealand's benchmark NZX 50 index climbed 1.5 percent to 4,380.4. STOCKS ON THE MOVE * Linc energy soared 11.7 percent to A$0.91, after it reiterated to the stock exchange on Tuesday that it planned to restructure its coal division to focus on its oil and gas production assets and could work with partners. (0108 GMT) * Senex Energy Ltd surged 10.2 percent to A$0.54, after it said its contingent gas resources in the South Australian Cooper Basin have been upgraded to 5.5 trillion cubic feet (Tcf). (0107 GMT) * Struggling surfwear company Billabong International Ltd dropped 7.9 percent to A$0.18, backing off from a sharp gain in the previous session after it said its refinancing and asset sale discussions were "well advanced". (0106 GMT) * Paladin Energy Ltd tumbled 10.2 percent to a 1-1/2 month low of A$0.79, after it said the strategic initiative outcome expected to be finalised at the end of June has been delayed to mid to late August. (0104 GMT) (Reporting by Maggie Lu Yueyang; Editing by Shri Navaratnam) Link this Share this Digg this Email Reprints

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