Aust stocks extend volatile run in 1.1% rebound

Local market swings into black on US growth hopes, solid performance on Asian markets.

In another wild swing that continues a volatile start to the financial year, the Australian stock market rebounded to sit 1.1% higher after fresh data pointed to a strengthening United States economy, recouping some of the heavy losses in Wednesday trade. 

Materials led the recovery as most markets across Asia posted gains and China's benchmark staged a relief rally.

At the 1615 AEST official market close, the benchmark S&P/ASX200 index lifted 1.07% to 4,794.7 points, while the broader All Ordinaries index was 1.13% stronger at 4,781 points.

The gains come a day after the local market see-sawed almost 1.9% into the red on Wednesday. 

CMC Markets sales trader Betty Lam said a healthy close on Wall Street overnight fuelled gains.

"With zero economic data out from China today, traders are using the opportunity to take stock and focus domestically," she said.

"There is no real driving force behind the renewed love for the ASX200 other than traders correcting themselves following yesterday’s knee-jerk reaction to China’s soft numbers."

William Leys, also from CMC Markets, said the benchmark continued its "Jekyll and Hyde form".

"Significant volatility has characterised the action of late with large swings in both directions," he said.

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