Australian shares rebounded strongly from day’s low after the country's central bank maintained status quo to support the economic growth. The Reserve Bank of Australia (RBA) kept interest rates steady at record lows, in line with market expectation, and reiterated its commitment to maintaining highly supportive monetary conditions to support a return to full employment in the country and inflation consistent with the target.
The market breadth, indicating the overall strength of the market, was weak with seven of the 11 sectoral indices trading in the red. The healthcare sector was the top loser on the ASX, declining 0.75 per cent before the close. n a similar trend, miners stocks jumped 1 per cent after iron ore futures on the Dalian Commodity Exchange for September month delivery surged 5.2 per cent to 1,106 yuan per tonne after the market recorded heavy losses in the last few weeks amid China’s vow to stabilise surging commodity prices.
The mining heavyweights like Fortescue Metals Fortescue Metals Group Limited, Whitehaven Coal Ltd and Pilbara Minerals Limited gained between 2-3%. Shares of Namoi Cotton Ltd gained as much as 1.4 per cent to 35.5 cents on Tuesday. The cotton processing firm shared it has appointed John Stevenson as its chief executive officer, effective from 7 June.
China’s Shanghai Composite is also down 0.1 per cent, while the Straits Times index in Singapore is trading higher by 0.08 per cent. New Zealand's benchmark S&P/NZX 50 traded higher by 0.5 per cent. The South Korean Kospi and the Taiwan market also trade higher.