Financial sector leads market rebound

The rally mirrored gains on Wall Street, after an improved offer for the troubled global investment bank, Bear Stearns.

Upbeat US housing data also helped ease concerns about credit markets.

The All Ordinaries Index has closed 171 points higher at 5,354, a gain of 3.33 per cent.

The ASX 200 Index has gained 191 points or 3.72 per cent to close at 5,318.

Among the financial stocks, the troubled investment fund Allco Finance has finished the day up more than 102 per cent after refinancing one of its property funds. Its shares are now worth 43 cents.

The country's top investment banker Macquarie Group closed more than 11.5 per cent higher. Its shares were up $5.80 to $55.30.

Shares in the Commonwealth Bank were up $3.15 at $42.45, a gain of more than 8 per cent.

The National Australia Bank's shares have climbed more than 5 per cent, closing up $1.49 to $30.60, and the ANZ Bank also made solid gains, adding $1.35 to $24.33.

In the resources sector, BHP Billiton shares have rebounded by more than 1.5 per cent, gaining 54 cents to finish the day at $34.41.

Rio Tinto has also closed in positive territory, with a 71 cent boost to take its share price to $117.

Shares in construction giant Leighton Holdings also soared by more than 8.5 per cent today. The company added $3.38 to $41.85.

The Australian dollar has recovered slightly against the US. About 4:56pm (AEDT) it was buying 91.24 US cents.

On the cross currencies, it was buying 0.5866 euros, 91.42 Japanese yen and 45.8 pence sterling.

A barrel of West Texas Crude oil was buying $US101.69 and Spot Gold was worth $US925.60 an ounce.

Source: By Australian Broadcasting Corporation