Reuters: Hot Stocks: Australia shares jump 1.7 pct on easing China, Fed jitters

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Australia shares jump 1.7 pct on easing China, Fed jitters Jun 27th 2013, 06:38 Thu Jun 27, 2013 2:38am EDT (Adds analysis, quotes) SYDNEY, June 27 (Reuters) - Australian shares climbed 1.7 percent on Thursday, its biggest one-day jump in two weeks, lifted by a Wall Street rally and receding concerns about Chinese growth, as investors looked for direction on economic policy after a surprise change of prime minister. Financials were firmer with top lender the Commonwealth Bank of Australia rising 2.8 percent while Westpac Banking Corp climbed 2 percent. Kevin Rudd was sworn in as Australian prime minister for the second time on Thursday, a day after toppling Julia Gillard and three months out from scheduled elections with polls suggesting the ruling Labor Party is staring at a devastating defeat. "The banks and defensives are the ones snapping back as yield and bargain hunters jump in," said Stan Shamu, IG's market strategist. "[Investors are] optimistic the election could be earlier than expected and the current government will engage more with business," Shamu said. Defensives helped underpin the market. Consumer retail staples Woolworths Ltd and Wesfarmers Ltd climbed 3.1 percent and 2.4 percent respectively. Top telecommunications provider Telstra Ltd surged 2.8 percent. The S&P/ASX 200 index finished 79.6 points higher at 4,811.3. The benchmark snapped a four-day losing streak and rose 1.6 percent on Wednesday. Australian stocks have been hit hard in recent sessions, pulled down from a year-high of 5,249.6 points set on May 15 by concerns about the U.S. Federal Reserve's plans to curtail its stimulus and a cash crunch in China. The Fed stimulus concerns receded somewhat overnight after a surprisingly sharp downgrade to first quarter U.S. economic growth sent U.S. stocks rallying for a second day. Miners lost ground, limiting the market's overall gains as copper prices remained under pressure amid worries about demand growth from major export market China. BHP Billiton Ltd and Rio Tinto Ltd fell 0.5 percent and 0.2 percent, respectively. The People's Bank of China said late on Tuesday it had helped some banks and was ready to act again as the lender of last resort for those caught in a short-term squeeze. The PBOC's assurances helped to quell fears of a cash squeeze morphing into a broader banking crisis in Asia's biggest economy. Troy Resources Ltd advanced 1.3 percent to A$1.51 after the company cut its base salary for its CEO and senior executives in response to price volatility. Meanwhile, job vacancies in Australia fell sharply in the three months to May, a second quarter of steep declines that could augur poorly for labour demand, government data showed on Thursday. New Zealand's benchmark NZX 50 index rose 0.5 percent or 23.3 points to finish the session at 4,417. (Reporting by Thuy Ong; Editing by Shri Navaratnam) Link this Share this Digg this Email Reprints

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