Reuters: Hot Stocks: Australia shares post biggest one-day gain in 18-months, high yield stocks lead

Reuters: Hot Stocks Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

Australia shares post biggest one-day gain in 18-months, high yield stocks lead Jun 14th 2013, 06:58 Fri Jun 14, 2013 2:58am EDT (Adds details, comments) SYDNEY, June 14 (Reuters) - Australian shares rebounded 2.1 percent on Friday, their biggest one-day gain in 18 months, as high-yielding financials helped the market recoup some of its recent steep losses after Wall Street rallied overnight. Traders, however, caution against reading too much into a session's bounce, noting that investors globally remain nervous after the recent turmoil in markets. "Traders [have been] seeking stocks that have recently been oversold," said Tim Waterer, senior trader at CMC Markets. "However, global market sentiment remains fickle at best which is why it's too early to suggest if this is the start of a sustained move higher." The S&P/ASX 200 index climbed 96 points to finish at 4,791.8 points, a modest recovery after the market dived 10 percent from its latest peak of 5,249.6 on May 15. The benchmark index is up 1.1 percent for the week, ending 4 consecutive weeks of losses. The local index has seen a heavy selloff in sympathy with a rout in global markets in recent sessions, driven by fears the U.S. Federal Reserve will wind back its stimulus measures this year, slowing growth in China and volatility in Japanese equities. The Australian market outperformed the rest of the region on Friday, with MSCI's broadest index of Asia-Pacific shares outside Japan rising 1.5 percent. Financials led the domestic bourse's rebound. National Australia Bank soared 3.6 percent while Australia's fourth largest bank, Australia and New Zealand Banking Group climbed 3 percent. Top lender the Commonwealth Bank of Australia jumped 2 percent. The 'big four' banks offer average yields of some 5.9 percent compared to 3 percent to 4 percent yields for 12-month term deposit accounts. Flagship telecommunications provider Telstra Ltd gained 1.3 percent. The company currently yields at 6.1 percent. "As long as interest rates remain low globally for the time being, the attraction still remains," said Tim Radford, global analyst at Rivkin Securities. Australia's central bank kept its main cash rate at a record low of 2.75 percent earlier in June. Elsewhere, bellwether miners BHP Billiton Ltd and Rio Tinto Ltd jumped 2.5 percent and 4.7 percent respectively. Consumer retail staples Woolworths Ltd and rival Wesfarmers Ltd also rallied 1.6 percent and 3.3 percent respectively. U.S. stocks rallied on Thursday after three days of losses as stronger-than-expected economic data helped offset concerns about the potentially sooner-than-expected expected winding down of the Fed's economic stimulus. New Zealand's benchmark NZX 50 index rose 0.4 percent or 19 points to finish the session at 4,421. (Reporting by Thuy Ong; Editing by) Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions