The Australian share market has closed strongly, posting its biggest gain in a single day so far this year.
Strong overnight gains in US stocks after positive retail and jobless data and reports suggesting stimulus measures there were not disappearing yet also buoyed traders, who sent the ASX up by two per cent.
IG market strategist Evan Lucas said the rally had started early yesterday afternoon when the market and blue chip stock's falls hit a level representing a full retracement of this year's gains.
Before Friday, the Australian market had slumped 10 per cent, posting losses in 13 of 17 trading sessions and four weeks in a row, sending it to its lowest level since mid-January.
"Since then, the stock pickers have been out in force,'' he said.
"They have seen ANZ Bank, for instance, as high as $34 this year, then fall as low as $26.
"If it goes back up there that's a total return and possible upside of 16-17 per cent and net dividend into seven and a bit per cent ... if the market returns to 5200-5300 points they are massive total returns if they hold on to the end of the year.''
Oil and gas company Beach Energy was the best performer among the top 100 companies, up seven cents, or 6.3 per cent, at $1.18.
Meanwhile, an increase in the iron ore price also boosted the big miners, with BHP Billiton up 79 cents, or 2.5 per cent, to $32.91 and Rio Tinto shot up by $2.41, or 4.67 per cent, at $53.98.
Fortescue Metals Group was 5.4 per cent higher at $3.34.
Investors also plied money back into the high yielding major banks, with CBA up $1.33 to $67.10, NAB was the standout, up $1.01, or 3.56 per cent, at $29.98, ANZ Bank added 81 cents to $27.82 and Westpac was up 76 cents to $28.94.
At the close today, the benchmark S&P/ASX200 index was 96 points, or 2.04 per cent, higher at 4,791.8.
The broader All Ordinaries index was up 90.6 points, or 1.93 per cent, at 4,775.5.
