June 22 (Reuters) - Australian shares were set for their
biggest gain in nearly three months on Tuesday, tracking an
overnight rally on Wall Street, as investors snapped up value
stocks that are expected to outperform along with an economic
The S&P/ASX 200 index rose 1.2% to 7,322.20 by 0114
GMT, on track for its best day since March 31.
Elsewhere, Japan's Nikkei added 2.4% and S&P 500
E-minis futures were up 0.1%.
U.S. stocks jumped on Monday as investors bought into
beaten-down value stocks, in a stark reversal from last week
when the Fed's hawkish signals on monetary policy sparked a
round of steep profit-taking.
Among individual shares and sectors, energy stocks
advanced 1.7% and were set to snap a three-day losing streak.
Heavyweight Santos added 2.8%.
Financials gained 1.7%, with the so-called "Big
Four" banks adding between 1.1% and 2.4%.
Heavyweight miners climbed 1.6%, with BHP
and Rio Tinto rising 2.1% and 1.8%, respectively.
Brokerage UBS, however, downgraded Rio Tinto's stock to
"sell" despite strong current free cash flow and expected
shareholder returns, as it expects a hit to iron ore prices from
a hawkish Fed and tighter Chinese control on commodity prices.
The gold subindex climbed as much as 2%, eyeing its
best day since June 11.
Gold miner IGO was the ASX200's top gainer, after
it said regulatory requirements for the internal restructure of
the Australian arm of China's Tianqi Lithium to
proceed were now satisfied. IGO plans to invest A$1.4 billion
into the local unit.
Investment firm Washington H. Soul Pattinson and Co Ltd
said it would buy peer Milton for A$4.05
billion, sending the latter's shares up nearly 17%.
New Zealand's benchmark S&P/NZX 50 index rose 0.4%
($1 = 1.3280 Australian dollars)
(Reporting by Vasudha Kaukuntla in Bengaluru; editing by