Australian market rallies after morning loses

The Australian market has rallied on Wednesday, finishing higher after suffering losses in morning trade.

At the close of trade, the benchmark S&P/ASX 200 index was up 32.40 points or 0.55 percent at 5,872.30, while the broader All Ordinaries index gained 33.60 points of 0.57 percent at 5,908.10.

"There was a turnaround in bank stocks, as the day progressed we saw buyers returning thinking that the sell off earlier had been overdone," CMC Markets chief market analyst Ric Spooner told Xinhua Wednesday.

"Outside that most of the other sector were positive, with moderate buying of the market."

Spooner says Tuesday's federal budget announcement was well received overall, despite a new tax for the financial sector.

"There's a feeling that spending initiatives, particularly in infrastructure spending plans would help to support company profits and the economy."

The weaker Aussie dollar also helped material stocks, with iron ore shares making substantial gains.

The Commonwealth Bank slipped 0.37 percent, Westpac Bank dropped 0.62 percent, ANZ gained 0.98 percent and National Australia bank lost 0.60 percent.

BHP Billiton climbed 1.55 percent, Rio Tinto surged 2.02 percent, Fortescue Metals shot up 5.53 percent and Newcrest Mining gained 1.67 percent.

Woodside Petroleum rose 0.70 percent Santos dipped 0.27 percent and Oil Search added 0.27 percent.

Wesfarmers jumped 0.96 percent and Woolworths also finished 0.70 percent higher.

Telstra lifted 0.23 percent, Qantas soared 0.95 percent and CSL was up 0.40 percent. Endit