Aust stocks close higher

Local market rebounds in afternoon trading to close firmly in the black.

The Australian stock market recovered in the afternoon to close 0.7% higher, with gains in banking and defensive stocks offsetting weakness in the materials space.

At the 1615 AEDT official market close, the benchmark index S&P/ASX200 index increased 0.69% to 5,331.5 points, while the broader All Ordinaries index rose 0.65% to 5342 points.

IG market strategist Chris Weston said industrials fared well in the session, while materials were under pressure as traders focused on the changing dynamics in the Chinese economy.

“Gains have been most prevalent in the industrial space, while the materials space continues to struggle, especially iron ore names,” he said.