The S&P/ASX 200 index finished 3.6 per cent higher at 5,258.60, recovering from the benchmark's 2.02 per cent fall on Tuesday.[SYDNEY] Australian shares closed almost 4 per cent higher on Wednesday, with energy and mining sectors leading gains, after upbeat data from the country's biggest trading partner China showed some signs of improvement.
The S&P/ASX 200 index finished 3.6 per cent higher at 5,258.60, recovering from the benchmark's 2.02 per cent fall on Tuesday. The benchmark closed at its highest level since March 17. China's factory activity improved in March after plunging a month earlier, a private survey showed on Wednesday, but the bare minimal growth showed the intense pressure on businesses. Separately, the country plans to step up fiscal and monetary policy adjustments to counter the pandemic's economic impact.
"China remains the lynch-pin for Australia's economic recovery, in particular our big-ticket items such as iron ore... Data from China showed our biggest trading partner has a pulse," said James McGlew, executive director of corporate stockbroking at Argonaut. However, worries persist over the country slipping into its first recession in almost three decades, as its government pumped in A$320 billion into the economy through several stimulus measures.