Global gyrations continue in sharemarkets

UPDATED 6am: Sharemarkets in America and Europe have tumbled on rumours of a downgrade in French government debt.

Earlier, Asian and Australasian stocks advanced as investors stepped back into equity markets that have lost more in the past two weeks than they gained this year.

UPDATED 3.45pm: The Australian stock exchange has pulled back slightly after a strong start, with the S&P/ASX 200 index dropping back to a 3% gain after being up 3.8% in early trading.

Bank stocks have been among those making strong gains, with ANZ rising by 5.5%, up $1.04 to $20.05, BNZ parent National Australia Bank rising by 6.6%, up $1.41 to $22.91 and Westpac rising by 5.4%, up $1.04 to $20.30.

The Australian banks have also been strong performers on the New Zealand sharemarket, which has risen 3.1% today.

ANZ shares are up 8.77% on the NZX 50, rising $2 to $24.80 and Westpac shares are up 8.9%, rising $2.10 to $25.70.

UPDATED 2.30pm: Asian markets have continued the positive tone of global stockmarkets after days of heavy losses.

Japan's Nikkei 225 Index was up 1.15%, or 102.57 points, to 9047 in early trading while the Hong Kong Hang Seng Index rose 3.22%, or 622.57 points, to 19,953.

Meanwhile the NZX50 has given up some of its initial gains, but is still up a healthy 2.99% at 3097.8. 

UPDATED 12.30pm : Trading has begun strongly across the Tasman with the S&P/ASX 200 index up 3.8% in early trade. The index, taking its lead like the NZX50 from US market movements, has gained over 150 points to sit above the 4000 level again, at 4137.

After losing 2.75% in Tuesday trade, the NZX 50 has risen 3.3% in early trade today with about $45 million of volume changing hands. 

The gain follows stronger trading on US bourses overnight. Stocks on Wall Street rebounded higher in a seesaw session after the worst three-day selloff since the 2008 global financial crisis. Traders moved stocks up and down as they absorbed the Federal Reserve's pledge to keep interest rates near zero at least through to mid-2013.

Locally, Pumpkin Patch, Diligent and Nuplex were the biggest gainers when the NZX opened for business.

The largest listed companies, Fletcher Building and Telecom, were up 3.8% and 3.9% respectively.

Looking ahead to the start  of trading in Australia in coming hours, Ben Potter from IG Markets is expected a much more pleasant open to Australian trade today as stocks look set to open the session sharply higher following the big snap-back rally on Wall Street.

"Whilst it will be very positive to see the gains, the big question is going to be how long the rally lasts before participants are faced with the question of whether this is just a bounce, like it usually is or is actually a meaningful bottom," he said.