Aussie sharemarket rebounds as China fears subside

SYDNEY - The Australian share market made up some ground yesterday to finish stronger, with gains from materials, financials and energy stocks.

The benchmark S&P/ASX200 index closed up 38.7 points, or 0.81 per cent, at 4801.8 points, while the broader All Ordinaries index gained 39 points, or 0.80 per cent, to 4911.6 points. On the ASX 24, the March share price index futures contract was up 42 points at 4787, with 17,954 contracts traded.

IG Markets research analyst Ben Potter said the market had rebounded from Monday's underperformance.

"The big driver of yesterday's performance was the selling we saw in China, so that seems to have stabilised today," Potter said yesterday. "I think a lot of people are realising that what the Chinese are doing in terms of trying to slow their economy is just prudent economic management."

The major mining stocks ended stronger. Fortescue was the best performer on the S&P/ASX200, up A54c, or 8.02 per cent, at A$7.27, as higher iron ore prices boosted its operating margins in the December quarter.

BHP closed up A32c at A$45.62, while Rio Tinto climbed A92c to A$86.80.

- AAP