Big banks have led an almost three per cent surge in Australian shares after an overnight buying spree on US and European markets .
Confidence has risen a little as jittery investors see governments and central banks taking action to ease the economic pain of the coronavirus outbreak, analysts say.
The benchmark S&P/ASX200 surged 3.5 per cent before easing back a to trade up 140.4 points, or 2.94 per cent, at 4,923.3 at 1030 AEDT on Friday.
All indicies were in the green except health care and consumer staples, as the broader All Ordinaries index gained 140.4 points, or 2.92 per cent, to 4,949.8.
Banks have been hammered in the past four weeks of coronavirus sparked turbulence.
But they were back in favour on Friday morning ahead of an announcement about a package to help customers weather the economic turmoil.
ANZ gained 85 cents, or 5.67 per cent, to $15.85, NAB added 94 cents, or 6.45 per cent, to $15.51, Commonwealth bank rose $2.88, or 4.73 per cent, to $63.83 and Westpac lifted 97 cents, or 6.68 per cent, to $15.50.
IG Markets analyst Kyle Rodda says volatility seems to be diminishing, “arguably thanks to some extraordinary steps from economic policymakers to support the financial system and the global economy in the face of the COVID-19 outbreak”
But signs of stress remain in parts of the financial system, he said.
The energy index was another big mover on Friday morning as oil stocks gained from a big gain in US oil prices overnight.
Oil Search was up more than nine per cent at $2.22 and Woodside rose 5.97 per cent to $16.86.
Supermarkets were having an off day, with Coles down four cents at $17.21 and Woolworths losing 88 cents to $39.02.
CSL was up a little but medical tech company ResMed fell $1.38, or 5.56 per cent, to $23.45.
The ASX retreated on Thursday despite stimulus from the reserve bank and the Australian dollar tipped a low of 55.08 US cents at one point, a level last seen in October 2002.
One Aussie dollar was buying 56.81 US cents at 1030 AEDT on Friday, down from 56.89 US cents at Thursday’s ASX close.
AAP
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