SYDNEY, AAP – Australian shares jumped more than one per cent as the ASX rebounded from its biggest loss in more than four weeks.

The benchmark S&P/ASX200 index was higher by 96.7 points, or 1.33 per cent, to 7332.0 at 1200 AEST on Tuesday.

The All Ordinaries was up by 99.8 points, or 1.33 per cent, to 7585.

The heavyweight financials and materials indices led the gains, each trading about 1.7 per cent higher and nearly all sectors rose.

Telecommunications was up two per cent. There were gains of more than one per cent for energy, industrials, consumer discretionaries, utilities and property.

The local market took the cue from Wall Street after US markets closed higher as Federal Reserve chair Jerome Powell outlined why a surge in inflation would be temporary.

Mr Powell attributed the recent jump in inflation to a 13-year high to steep price drops last year, higher petrol prices and rapid increases in consumer spending.

He remained confident inflation would drop to the US central bank’s long term goal of two per cent.

Global markets had slid after Fed Reserve officials last week signalled they may increase rates twice in 2023.

Meanwhile in Australia, new figures show Victoria’s labour market took a hit during the early stages of its recent COVID-19 lockdown.

The Australian Bureau of Statistics said payroll jobs in Victoria tumbled 2.1 per cent in the fortnight to June 5.

Overall, national payroll jobs declined 0.9 per cent over the two weeks.

On the ASX, Soul Pattinson shares were up 0.49 per cent to $30.40. after it agreed to buy all the remaining shares in rival investment group Milton Corporation.

The deal will create a $10 billion organisation by September if shareholders and courts approve.

Soul Pattinson is offering $6 per share and independent Milton directors have recommended shareholders accept.

Milton shares were higher by 14.8 per cent to $5.74.

Miner IGO gained some of the regulatory approvals needed for its joint venture with Tianqi Lithium Corporation. The two companies are aiming to finalise the creation of Tianqi Lithium Energy Australia by June 30.

IGO shares were up 5.86 per cent to $7.49.

Other big miners also recorded strong gains.

BHP rose two per cent to $46.53. Fortescue gained 2.15 per cent to $22.28. Rio Tinto climbed 1.54 per cent to $121.90.

Banks did almost as well.

ANZ increased by 1.81 per cent to $28.59. The Commonwealth Bank surged by 2.43 per cent to $100.45. NAB was better by 0.83 per cent to $26.64. Westpac improved by 1.58 per cent to $26.56.

Bank of Queensland rose 4.15 per cent to $9.14 after sliding about five per cent on Monday.

Healthcare was the only industry category lower. CSL fell 1.08 per cent to $301.69.

The Australian dollar was buying 75.22 US cents at 1200 AEST, lower from 75.01 US cents at Monday’s close.