ASX 200 adds $81bn in best session since 2020; Link faces fresh takeover bid

ASX nets its biggest gain since June 2020 after the RBA's 'shock' rate move. Dye & Durham makes fresh Link bid, banks lead blue chip gains and Lottery Corp the sole 'loser'.

The RBA's rates decision is a focus of ASX investors. Picture: Gaye Gerard

Welcome to the Trading Day blog for Tuesday, October 4. The Australian sharemarket surges by nearly 4 per cent after the Reserve Bank lifts the cash rate by an unexpected 25 basis points.

The S&P/ASX 200 index advanced 242.44 points, or 3.8 per cent to close at 6699.30. It was the biggest daily gain for the bourse since a 3.9 per cent rally in June 2020.

On Wall Street, the S&P 500 index gained 2.6 per cent, while the Nasdaq index lifted 2.3 per cent and the Dow Jones Industrial Average index was 2.7 per cent higher.

US 10-year bond yields fell to 3.65 per cent while two-year yields fell to 4.12 per cent.

The global benchmark Brent crude oil firmed 4.4 per cent to $US88.86 per barrel and US Nymex up 5.2 per cent to $US83.63 per barrel.

Iron ore futures fell 1.1 per cent to $US94.22 per tonne with gold futures up 1.8 per cent to $US1702 an ounce.

The dollar surged to 65.42c after the local close as it rebounded from a step drop after the rate decision.