Australian market finishes 5pc higher

The Australian share market has clawed-back all of this week's losses to end the session 5 per cent higher, following strong economic news out of Asia and gains in New York overnight.

It has been a remarkable week on the market - just three days ago it shed 7.3 per cent, its biggest one-day fall since 1989.

Confidence has returned back to the market, with the All Ordinaries Index closing 280 points higher to 5,886.

The ASX 200 closed up 279 points to 5,860.

All the major banks were higher, with the National Australia Bank up about 8 per cent to $36.49.

The Commonwealth Bank added 5.8 per cent and the ANZ was up $1.47.

Financial firms also added value, with Macquarie Group adding 7.8 per cent.

Babcock and Brown has added almost 5 per cent.

In the resources sector, stronger oil and base metals prices have buoyed the miners.

BHP Billiton was up $1.98 and Rio Tinto surged 9.25 per cent to $118.50.

Gold miners have also closed stronger - Newcrest Mining was up 1.9 per cent.

Stocks exposed to the US market have also bounced back. James Hardie Industries was up 5.8 per cent.

CommSec analyst Julianna Roadley says the share market has staged a remarkable comeback.

"If you have a look at the market we have actually ended up between 4 and 5 per cent higher than what we started at the beginning of the week," she said.

"So it [the market fall earlier in the week] was an overreaction from a lot of people selling out of the market, creating a lot of stress on their portfolios and their wallets and then getting back in, if they can, at these discount prices."

About 5:00pm AEDT the Australian dollar was buying 88.41 US cents, 44 UK pence, 95 Japanese yen and 59 Euro cents.

Spot gold was worth $US909 an ounce and West Texas crude oil was fetching $US89.98 a barrel.

Source: By Australian Broadcasting Corporation

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