Australian shares jump to five-month high

Australian shares rallied 1 percent on Tuesday to their highest close in five months after the central bank cut its main cash rate in a bid to bolster growth in the face of weak commodity prices and global uncertainty. The Reserve Bank of Australia cut interest rates by a quarter point to a three-year trough of 3.25 percent on Tuesday, saying a darker global background, falling export prices and a high currency had all dimmed the economic outlook at home.
The benchmark S&P/ASX 200 index rose 44.4 points to 4,433, its highest close since early May, led by financials and miners. The benchmark ended flat on Monday. New Zealand's benchmark NZX 50 index finished 1.1 percent or 41.2 points higher at 3,871.3. Westpac led gains among the big banks, rising 0.9 percent to A$25.16. Among the major miners BHP Billiton jumped 1.3 percent and rival Rio Tinto gained 1.2 percent. Defensive stocks also rallied, with Australia's biggest phone company Telstra up 1 percent. Qantas Airways jumped 2.5 percent to A$1.22.