Shares recover after meltdown

AUSTRALIAN shares clawed back about $17 billion as markets recovered from the impact of a three-day meltdown on Wall Street.

The S&P/ASX200 index gained 0.75 per cent to 5876.8 points, regaining some of the ground lost from its 4.7 per cent drop over Monday and Tuesday that wiped $99 billion from the market’s value.

Asian markets were mixed, with Japan’s Nikkei up 0.3 per cent and Hong Kong’s Hang Seng index slightly negative.

The relative calm follows a volatile session on Wall Street that ended with the Dow Jones Industrial Average rising by 2.3 per cent in Tuesday trading.

Independent market strategist Evan Lucas said growth-exposed sectors of the Australian market such as materials and energy stocks, performed well because global growth still looked robust and commodities prices remained strong.

“The volatility over the last few days is down to risk pricing in the US and unfortunately we got caught up in it,” he said.

Rio Tinto gained 3.8 per cent to $78.31 before releasing its full-year results after the close to show a 90 per cent improvement in net profit.

BHP Billiton climbed 1.8 per cent to $29.86 and Fortescue Metals 2 per cent to $5.04.

Woodside Petroleum added 1.8 per cent to $32.60, Santos 1.6 per cent to $5.03 and Oil Search 1.9 per cent to $7.56.

The major banks all lost ground.