Australia: Shares track Wall Street higher on economic recovery hopes

[BENGALURU] Australian shares were set for their biggest gain in nearly three months on Tuesday, tracking an overnight rally on Wall Street, as investors snapped up value stocks that are expected to outperform along with an economic recovery.

The S&P/ASX 200 index rose 1.2 per cent to 7,322.20 by 0114 GMT, on track for its best day since March 31.

Elsewhere, Japan's Nikkei added 2.4 per cent and S&P 500 E-minis futures were up 0.1 per cent.

US stocks jumped on Monday as investors bought into beaten-down value stocks, in a stark reversal from last week when the Fed's hawkish signals on monetary policy sparked a round of steep profit-taking.

Among individual shares and sectors, energy stocks advanced 1.7 per cent and were set to snap a three-day losing streak.

Heavyweight Santos added 2.8 per cent.

Financials gained 1.7 per cent, with the so-called "Big Four" banks adding between 1.1 per cent and 2.4 per cent.

Heavyweight miners climbed 1.6 per cent, with BHP and Rio Tinto rising 2.1 per cent and 1.8 per cent, respectively.

Brokerage UBS, however, downgraded Rio Tinto's stock to "sell" despite strong current free cash flow and expected shareholder returns, as it expects a hit to iron ore prices from a hawkish Fed and tighter Chinese control on commodity prices.

The gold subindex climbed as much as 2 per cent, eyeing its best day since June 11.

Gold miner IGO was the ASX200's top gainer, after it said regulatory requirements for the internal restructure of the Australian arm of China's Tianqi Lithium to proceed were now satisfied. IGO plans to invest A$1.4 billion into the local unit.

Investment firm Washington H. Soul Pattinson and Co said it would buy peer Milton for A$4.05 billion, sending the latter's shares up nearly 17 per cent.

New Zealand's benchmark S&P/NZX 50 index rose 0.4 per cent at 12,544.65.

REUTERS