By Aditya Soni
March 27 (Reuters) - Australian shares recovered on Tuesday,tracking a surge in
The S&P/ASX 200 index rose 0.6 percent or 33.7points to 5,824.6 by 0100 GMT. The benchmark declined 0.5percent on Monday.
Wall Street recorded its best day in 2-1/2 years and the DowJones Industrial Average posted its third-biggest point gainever on Monday.
"There was a big bounce in the U.S. market so we are doingthe relief rally bounce," said Mathan Somasundaram, marketportfolio strategist, Blue Ocean Equities.
But Somasundaram added that this bounce would be short-termbecause there were structural issues that could already be seenin the form of problems with global growth.
Following a strong cue from
Commonwealth Bank of
Materials stocks also contributed to the gains despite lowermetals prices.
Somasundaram said materials stocks were rising becauseinvestors were buying on sentiment without consideringunderlying themes.
Global miner BHP rose 0.5 percent, while its rivalRio Tinto Ltd strengthened 0.9 percent.
Fortescue Metals Group Ltd fell 2.7 percent to itslowest in more than 18 months after cutting its price guidanceon iron ore sales for the year to end-June 2018.
The 1.4 percent fall in Newcrest Mining,
Newcrest said it would recommence mining operations at itsflagship Cadia mine on Tuesday but all mined ore would bestockpiled on the surface until processing restarted.
In
Consumer staples and health care stocks led the gainers,with a2 Milk Company Ltd surging about 3 percent, whileFisher & Paykel Healthcare Corporation Ltd rose 1.7percent.
(Reporting by Aditya Soni in BengaluruEditing by Eric Meijer)