ASX Today Live News & Analysis

The Australian share market has rebounded in its biggest daily gain of 2025, but the recovery could sink under the weight of trade war uncertainty.

The S&P/ASX200 rose 166.7 points, or 2.27 per cent, to 7,510.0 on Tuesday, while the broader All Ordinaries gained 180.1 points, or 2.39 per cent, to 7,704.4.

The benchmark index recovered less than one-third of 7.6 per cent sell-off over the last three sessions, prompted by US President Trump's 'Liberation Day' tariffs announced last week.

"Australian shares rebounded on Tuesday, buoyed by gains in energy and technology stocks," CommSec chief economist Ryan Felsman said.

"While investors saw relief in Federal Treasurer Jim Chalmers' remarks that resource-rich Australia will be able to manage the direct impact of US President Donald Trump's sweeping tariffs."

All 11 sectors finished in the green, led by a 4.8 per cent rally in IT stocks.

Energy stocks rose 3.5 per cent after tumbling almost 15 per cent over the previous two sessions, with the oil price on Friday falling to three-year lows.

Brent crude has rebounded more than three per cent since last week to $US64.79, but tit-for-tat trade war escalations between China and the US are capping the recovery.

Mr Trump has vowed to increase duties on Chinese imports to above 100 per cent, in response to China's retaliatory 34 per cent tariff on US goods.

Beijing has vowed to "fight to the end" any further escalation from the US.

Materials and financial stocks helped lift the local bourse, with materials up 2.4 per cent and two per cent respectively.

The Commonwealth Bank was leading the big four, clawing back 2.8 per cent after plummeting more than six per cent on Monday.

Consumer discretionary stocks also rallied, up 3.2 per cent as Bunnings owner Wesfarmers shot up nearly three per cent after falling 8.9 per cent since Mr Trump's tariff announcement.

Westpac's consumer sentiment survey released on Tuesday showed confidence fell six per cent in April.

With tariff negotiations in their infancy and post-Liberation Day economic indicators still weeks away, it could be a while before markets show signs of a sustained recovery.

Tiger Brokers chief strategy officer Greg Boland said spikes such that overnight in the US volatility index sometimes provided buying signals, but investors would have to watch closely for further signs of a solid turnaround.

"I think if the markets don't recover reasonably quickly, then we'll fall further in terms of equities," Mr Boland told AAP.

The Australian dollar has also rebounded to buy 60.59 US cents, up from 60.14 US cents on Monday at 5pm.

The Aussie has sold off more than any other major currency since the US tariffs were announced on April 2.

ON THE ASX:

The benchmark S&P/ASX200 index rose 166.7 points, or 2.27 per cent, to 7,510.0 on Tuesday

The broader All Ordinaries gained 180.1 points, or 2.39 per cent, to 7,704.4

The NZX 50 added 115.56 points (0.97%) to 11,891.44 while the Nikkei gained 1876.00 points (5.68%) at the time of writing, to be closed at 33,012.58

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