Australian stocks have jumped more than 1.5 per cent at the start of trade after a big rally in US markets.
The benchmark S&P/ASX200 was up 108.3 points, or 1.71 per cent, at 6,433.7 at 1015 AEDT on Thursday as all sectors rallied.
The broader All Ordinaries index rose 113.8 points, or 1.78 per cent, to 6,512.3.
The local stock market suffered monster losses on Wednesday despite this week’s rate cut by the Reserve Bank and better than expected economic growth.
But offshore markets rallied.
NAB senior economist David de Garis suggests the markets were driven by hope that governments will follow the lead of central banks and respond to the coronavirus emergency with stimulus packages to protect their economies.
“Australia and the UK have both said details will be available soon – two currencies showing gains today – whereas Europe is a little more cagey, with the Euro losing ground,” he said.
Morningstar says former US vice president Joe Biden’s strong showing in the Super Tuesday Democratic primary contests injected a dose of confidence into Wall Street.
Local investors will be watching to see international trade in goods and services data for January on Thursday.
The Australian dollar was buying 66.19 US cents at 1015 AEDT, up from 65.97 US cents as the market closed on Wednesday.