The Australian sharemarket rebounded on Tuesday as investors took a breather following heavy selling, triggered by US recession fears earlier this week.

The benchmark S&P/ASX 200 Index rose 0.4 per cent, or by 31 points to 7680.6 at the closing bell, with seven out of the 11 sectors in the green. It kept its gains after the Reserve Bank’s decision to leave the cash rate on hold at 4.35 per cent.

The All Ordinaries added 0.4 per cent.

The RBA left the cash rate unchanged at a 12-year high of 4.35 per cent, as widely predicted by the market and economists. The central bank said underlying inflation remained “too high.”

The decision comes after the local sharemarket suffered its worst day in more than four years on Monday, following weak jobs figures in the US, which sparked fears of a recession.

“While one day of volatility on the ASX may not influence the board’s policy decisions, sharper-than-expected rate cuts from the Fed may open the door for the RBA to ease monetary policy sooner than anticipated,” said eToro market analyst Josh Gilbert.

Elsewhere in the world, Japanese equities powered higher, retracing some of the losses sustained in Monday’s global rout, which wiped out billions across markets from New York to London. US equity futures also pointed higher.

On the ASX, interest rate sensitive consumer discretionary and real estate stocks recorded the most gains. Retail conglomerate Wesfarmers added 2.3 per cent to $70.73 and property heavyweight Goodman Group climbed 2.2 per cent to $32.82.

Meanwhile, the energy sector was the worst performing, down 2 per cent. The losses tracked a decline in commodity prices as global economic malaise dimmed the outlook for industrial demand and sent traders rushing to cash out of profitable positions.

Oil since rebounded slightly from a seven-month low as Brent climbed towards $US78 a barrel after tumbling more than 5 per cent over the previous three sessions.

Within the sector, Woodside Energy dropped 5.1 to $25.12 after the oil and gas producer got a harsh reception to its surprise $3.7 billion purchase of a lower-carbon ammonia project under construction in the United States.

Ampol slid 0.8 per cent to $32.21 and Beach Energy lost 0.7 per cent to $1.405.

Three of the four major banks recorded gains, led by index heavyweight Commonwealth Bank rallying 2.2 per cent to $127.69. National Australia Bank rose 0.7 per cent to $35.05 and Westpac firmed 0.5 per cent to $27.82.

ANZ was an exception, falling 0.5 per cent to $27.30.

Stocks in focus

Coal miner Coronado Global Resources’ shares fell 0.8 per cent to $1.27 after it reported revenue slumped 10 per cent to $1342 million in the half-year due to lower average metallurgical coal prices. It reported a net income of $16.2 million and adjusted earnings before interest, taxes, depreciation and amortisation of $135.4 million.

Winemaker Treasury Wine Estate added 1 per cent to $11.70 after it said it would shop around its cheaper wine brands as part of a strategic reset for the Penfolds owner.

Audiovisual networking business Audinate Group shares tumbled 36.3 per cent to $8.48 after the company provided a soft FY25 outlook which implied a large consensus downgrade. It was the worst performing ASX 200 stock.

With Bloomberg