SYDNEY, Oct. 18 (UPI) -- The Australian share market shook off a string of losses Thursday and finished 1.3 percent up at the close of trading.
The All Ordinaries Index added 85 points to 6,781 while the ASX 200 improved 88 points to 6,768.
The big banks led the recovery amid further talk of interest rate rises in Australia. Shares in the National Australia Bank increased 1.5 percent to 36.86 and the Commonwealth Bank added 1.4 percent to $53.62 while Westpac gained 1 percent to $25.90.
The resources sector also had a good day with BHP Billiton jumping 3 percent to $42.59 and Rio Tinto increased 2.6 percent to $100.72. The boom in oil prices saw Woodside Petroleum put on 2.5 percent to $49.53, despite the company downgrading its full year production forecast.
Meanwhile housing affordability in Australia hit a record low due to interest rate increases and rising home prices. The First Home Buyer Affordability Index produced by the Housing Industry Association and the Commonwealth bank dropped 2.1 percent in the September quarter -- 8.3 percent lower than a year ago.
On the foreign exchange market, the Australian dollar was buying 89.37 U.S. cents, 104 Japanese yen, 43.7 British pence and 62.81 euro cents.
A barrel of West Texas crude oil fetched $87.19 a barrel and spot gold traded at $758 an ounce.
