Aussie rally fades in late trade

Despite bolting out of the gate, the Australian stocks market faded in late trade as the financials contain the surge in resources stocks.

At the close on Wednesday, the benchmark S&P/ASX 200 was up 29.50 points, or 0.55 percent to 5,372.30 points, while the broader All Ordinaries index was up 30.90 points, or 0.57 percent to 5,434.80 points.

Aussie traders lost conviction in the early afternoon after the cash market rallied almost 2 percent at the open with energy and resources stocks leading the charge.

The market had been eyeing a close above the October 29 high of 5,384 points to reclaim 50 percent of losses occurred between mid-April 2015 to mid-June despite hitting an intra-day high of 5425 points, a level not seen since early August.

"The bulls are in control of this move, but they lacked a bit of emphasis to push higher," IG chief market strategist Chris Weston told Xinhua, suggesting a bit of buying fatigue had entered. The ASX has added 2.4 percent since the start of May.

The banks were the main drag on the index, with ANZ down 1.09 percent, the Commonwealth Bank of Australia slipping 0.01 percent, the National Australia Bank falling 0.14 percent though Westpac managed a 0.03 percent gain.

BHP Billiton bounced 4.04 percent, rival Rio Tinto added 1.34 percent and gold miner Newcrest 3.43 percent stronger.

Santos rose 0.74 percent, Woodside Petroleum edged 0.04 percent higher while Oil Search closed flat.

Wesfarmers edged 0.02 percent stronger however rival Woolworths rallied 5.46 percent on rumours of a takeover.

Telstra climbed 0.53 percent though Qantas ended the session flat. Endit