Aust stocks rally on US stimulus hopes

Australian shares have surged almost six per cent on a new wave of optimism about a massive US economic stimulus deal. 

The benchmark S&P/ASX200 powered 281.4 points, or 5.94 per cent, higher to 5,017.1 at 1015 AEDT on Wednesday as investors bought across the board.

The All Ordinaries index climbed 282.3 points, or 5.94 per cent, to 5,035.6 as big miners and big banks soared.

Analysts have said it looks set to be another positive day but are cautious about how long any bounce will last.

The local bourse rallied on Tuesday from a near eight-year low with the US Federal Reserve taking drastic action to shore up markets and new coronavirus cases seeming to plateau in Italy.

Overnight the US, European and Chinese stock markets also surged on hopes a $US2 trillion stimulus deal would soon be clinched.

The Australian dollar was buying 59.84 US cents at 1015 AEDT on Wednesday up from 59.39 US as the market closed on Tuesday.

AAP

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