Australian stocks closed up 1 percent on Tuesday as banks and miners clawed back losses from Monday, driven by investors betting US lawmakers would reach a compromise on the budget and debt ceiling to avert a national default. Even if the United States raises the $14.3 trillion debt limit, removing that uncertainty from the market may not be enough to push local shares above the 5,000 barrier.
The benchmark S&P/ASX 200 index gained 42.9 points to close at 4,573.3, according to the latest data, recouping more than half of Monday's loss, but remains not far off this year's lows. New Zealand's benchmark NZX 50 index lost 11.5 points, or 0.3 percent, to close at 3,416.6. The top miners jumped around 1 percent, while the banks were up between 0.5 and 1.4 percent. Macquarie Group gained 1.5 percent. Healthcare stocks fell 0.4 percent, while the staples sector slipped 0.3 percent.