Reuters: Hot Stocks: Australia shares rebound in biggest one-day gain since April

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Australia shares rebound in biggest one-day gain since April Jun 14th 2013, 01:36 Thu Jun 13, 2013 9:36pm EDT (Adds details, comments, stocks on the move) SYDNEY, June 14 (Reuters) - Australian shares rebounded 1.3 percent on Friday, their biggest one-day gain since April, as high-yielding stocks including flagship financials underpinned the local market and Wall Street rallied overnight on stronger-than-expected data. Financials were led by Westpac Banking Corp soaring 2.1 percent while top lender Commonwealth Bank of Australia jumped 1.3 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. "I think that the yield play is still extremely valid, I think that investors will continue to seek high-yielding stocks such as the banks," said Tim Radford, global analyst at Rivkin Securities. Flagship telecommunications provider Telstra Ltd gained 0.5 percent. The company currently yields at 6.1 percent. The S&P/ASX 200 index climbed 61.1 points to 4,756.9 by 0120 GMT, recovering modestly after the market dived 10 percent from its latest peak of 5,249.6 on May 15. The benchmark fell 0.6 percent on Thursday. The local index has been routed in recent sessions on concerns over slowing growth in China, fear the U.S. Federal Reserve will wind back its stimulus measures this year and volatility in Japanese equities. However, the Australian equities market was trading significantly higher than the rest of the region on Friday, with MSCI's broadest index of Asia-Pacific shares outside Japan rising 0.6 percent. "If we see the market hold up nicely through to the close today, above 50 points, I'd say that it's a sign that confidence is returning into the Australian market and we can see an upside to the next week or so," Radford said. Elsewhere, Blue chip miners BHP Billiton LTd and Rio Tinto Ltd jumped 1.7 percent and 2.8 percent. Defensives were trading mostly stronger. Consumer retail staples Woolworths Ltd rallied 1 percent while rival Wesfarmers Ltd added 2.1 percent. Blood products maker CSL Ltd bucked the trend, tumbling 1.2 percent. Meanwhile, data on Thursday showed Australian employment beat expectations with a small rise in May while the jobless rate surprised by ticking down to 5.5 percent, a resilient result that lengthened the odds on a cut in interest rates by the Reserve Bank of Australia next month. Markets are currently pricing in almost a one-in-three chance of a rate cut in July. U.S. stocks rallied on Thursday after three days of losses as stronger-than-expected economic data helped offset concerns about the expected winding down of the Federal Reserve's economic stimulus. New Zealand's benchmark NZX 50 index rose 0.6 percent or 26.5 points to 4,428.4. STOCKS ON THE MOVE * Beach Energy Ltd soared 2.7 percent to A$1.14 after the company announced it had made four new oil discoveries. (0123 GMT) (Reporting by Thuy Ong; Editing by Eric Meijer) Link this Share this Digg this Email Reprints

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