Australian shares percent rose 1.4 percent on Tuesday, rebounding after a steep sell-off in the previous session, helped by a positive lead from Wall Street and hopes for further economic stimulus in China. The S&P/ASX 200 index rose 82 points to 5,928.1 by 0111 GMT. The benchmark ended down 1.25 percent at 5,846.1 on Monday, its lowest close since March 18.
China late on Monday announced steps to ease housing taxes and lending rules to prop up a sliding housing market which is imperilling the world's second largest economy.
China is Australia's No 1 trading partner.
Despite Tuesday's gains, the index is nearly flat in March so far and is set for its worst monthly performance since last November, hurt by continuing volatility in key commodities such as iron ore and crude oil.
"The market has run very hard this morning, look for a few profits to be taken off the table this afternoon, particularly given it is end of quarter so there could be some book squaring," said Tristan K'Nell, head of trading at Quay Equities.
Financials led the gains ,with the big banks including Westpac and CBA up over 1 percent. Major miners BHP and Rio Tinto were up 3 percent and 2 percent respectively.
G8 Education slumped on delay in settlement of 8 childcare centres it had acquired.
New Zealand's benchmark NZX50 index edged up 13.7 points or 0.2 percent to 5,835.041 in early trade, supported by gains in telecommunications and health-related shares.
Spark rose 0.9 percent, after the previous day's slide close to a three-month low prompted investors to pick up shares in the nation's biggest telecommunications operator.
Struggling outdoor wear maker Kathmandu was the index's biggest gainer in early trade, rising 2.2 percent, as some investors bought cheap shares following their slide to a near three-year low on Monday.
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