Australia, NZ stock markets soar in early trading

Australia and New Zealand's share markets rocketed upward on Tuesday following a record day on Wall Street that saw US shares soar more than 11 per cent.

Australia and New Zealand's share markets rocketed upward on Tuesday following a record day on Wall Street that saw US shares soar more than 11 per cent. By noon, Australia's benchmark S&P/ASX200 was up 219 points, or 5.24 per cent, to 4399.7, and the Australian dollar was trading at 70.67 US cents _ up almost four cents from its close on Monday. The jump comes as Australia's government unveiled a 10.4 billion Australian dollar (US$7.4 billion) spending package intended to stimulate Australia's slowing economy.

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The government's decision to intervene was a catalyst for the market's surge, Cameron Securities client adviser Adrian Leppinus said.

"We've seen phenomenal gains," Leppinus said. "There's been a mad rush for people to get back in."

The New Zealand share market broke a seven-day slide and was up 187 points, or 6.7 per cent, to 2,969.04 in early-afternoon trading, with a sea of green covering dealer screens.

New Zealand's surge follows the government's announcement Sunday of a 150 billion New Zealand dollar (US$92.5 billion) deposit guarantee scheme, meaning the savings of most New Zealanders are now government-backed.

The big trading banks _ ANZ National, BNZ, ASB and Westpac _ joined TSB, SBS Bank and government-owned Kiwibank to confirm their commitment to the scheme, aimed at restoring confidence in the face of the global financial storm.