Australian shares jumped 2.6 percent on Thursday, marking a fourth straight day of gains after the world's six major central banks moved to tame a liquidity crunch for European banks by providing cheaper dollar funding. It was the biggest one-day percentage gain since October 24.
Australia's big miners rallied while top banks all gained over 2 percent each after top central banks agreed to lower the cost of existing dollar swap lines to European banks in an effort get a grip on the eurozone debt crisis. Australian investors were also encouraged after China, the biggest consumer of Australian resources, cut reserve requirements for its commercial lenders for the first time in nearly three years.
Top miners BHP Billiton and Rio Tinto both gained over 4 percent while banks rallied, led by a 3.3 percent rise in National Australia Bank. The benchmark S&P/ASX 200 index rose 108.8 points to 4,228.6, a two-week high. The index has advanced 6 percent since ending last week below 4,000. New Zealand's benchmark NZX 50 index rose 0.2 percent to 3,277.3.