Australian investors enjoyed an unlikely bounce on Tuesday, shaking off an awful overseas lead and a continuing rout in Chinese stocks to record solid gains a day after suffering the worst day of trading since the GFC.

The benchmark S&P/ASX 200 index reached a nadir of 4928.3 shortly after opening but then performed, at its peak, an impressive 223 point turnaround - equivalent to a 4.5 per cent intraday rally. The index ended the day up 136 points at 5137.3 or 2.7 per cent, while the broader All Ordinaries index closed 130 points, or 2.6 per cent, higher at 5143.8.