The Australian share market closed higher following two days of monster losses after being thrown a lifeline by central bankers across the Tasman.
The benchmark S&P/ASX200 closed up 41.4 points, or 0.64 per cent, to 6,519.5 points, while while the broader All Ordinaries was up 42 points, or 0.64 per cent, to 6,588.5 points.
The gains came mostly after the Reserve Bank of New Zealand cut interest rates by 50 basis points, which was double what traders had been expecting and led many to assume the Reserve Bank of Australia was more likely to cut rates next month.
The Aussie hit a 10-year low against the US dollar following the move and bond yields flattened further while shares rose as investors sought yield, he said.
Consumer stocks, telecoms, utilities and property trusts were all up between 1.4 and 1.6 per cent while energy share and tech stocks were the only sectors to lose ground.
Four of the top five gainers among the ASX200 were goldminers as the price of the precious metal rose 1.9 per cent to more than $2,200 an ounce against the Australian dollar, and 1.1 per cent to more than $US1,485 against the greenback.
Resolute Mining was up 8.7 per cent, Regis Resources 6.2 per cent, Northern Star 5.7 per cent and Evolution 5.5 per cent.
Overall, the materials sector was subdued, up a collective 0.2 per cent, with mining giant BHP down 0.9 per cent to $36.75 and Rio Tinto down 2.1 per cent to $89.50.
Pinnacle Investment was second-biggest gainer, up 8.4 per cent to $4.63 on top of Tuesday's 10 per cent gains following the release of strong earnings results.
Commonwealth slid 1.4 per cent to $78.70 after Australia's biggest bank said its full-year profit was down a worse-than-expected 4.7 per cent to $8.5 billion following a $1.2 billion royal commission-related hit.
The other big banks posted gains, with Westpac up 1.1 per cent to $28.03, ANZ rising 0.8 per cent to $26.93 and NAB up 0.7 per cent to $27.69.
Suncorp rose 4.8 per cent to $13.32 after scrapping its so-called marketplace strategy to refocus on banking and insurance.
Melbourne biotech company Opthea shares soared 120 per cent to $2.06 after it announced a positive results for its eye-injection treatment for patients with macular degeneration.
The energy sector was down as the price of crude dropped below $US60 a barrel amid continuing US-China trade tensions and worries about weakening world demand.
Woodside dropped 0.4 per cent to $32.76, Santos was down 0.8 per cent to $6.58 and Beach Energy dropped 1.6 per cent to $1.885.
Consumer stocks did well, with Woolworths gaining 2.3 per cent to $35.50 while Wesfarmers was up 2.1 per cent to $38.68.
The S&P 500 has recovered from steep early losses to end slightly higher as investors snapped up oversold shares and bond yields rebounded from significant lows that raised fears about a recession.
Increasing worries over a global economic downturn and bets the Federal Reserve will have to pick up its pace of interest rate cuts pushed Treasury yields sharply lower early, with 10-year yields touching their lowest since October 2016.
Ten-year yields began to cut their earlier decline in afternoon trading after a soft auction.
During the session, the premium on three-month Treasury bill rates over 10-year Treasury yields, a closely watched US recession indicator, was at its most elevated levels since March 2007.
Financials were the biggest loser among S&P 500 sectors, down 1.2 per cent, while the staples and materials indexes ended up more than 1 per cent each.
Investors also were attracted to some bargains in shares after the recent sell-off. The S&P 500 is down 4.7 per cent since its July 26 record high close.
The Dow Jones Industrial Average fell 22.45 points, or 0.09 per cent, to 26,007.07, the S&P 500 gained 2.21 points, or 0.08 per cent, to 2,883.98 and the Nasdaq Composite added 29.56 points, or 0.38 per cent, to 7,862.83.
Interest rates futures suggested traders are building bets the Fed will cut interest rates three more times by year-end.
Central banks in New Zealand, India and Thailand on Wednesday cut their lending rates amid growing fears that the US-China trade war could aggravate a slowdown in the global economy.
Trade concerns re-emerged after President Donald Trump last week threatened to slap 10 per cent levies on the rest of $US300 billion of Chinese imports and called China a currency manipulator on Monday.
The energy sector was down 0.8 per cent after oil prices slid.
On the plus side, CVS Health Corp shares climbed 7.5 per cent after the drugstore chain raised its full-year profit forecast.
Walt Disney Co dropped 4.9 per cent, a day after its quarterly earnings missed analysts' forecast on higher investments in its streaming platform.