ASX 200: Australian stock market bounces back despite tariff threats after worst session in five years

Benchmark S&P/ASX 200 closes up more than 2%, representing its biggest one-day gain in more than two years

• Election 2025 live update: Australia's federal election campaign
• Get our afternoon election email, free app or daily news podcast

Investors piled back into Australian shares on Tuesday, ignoring a looming showdown between the US and China in a tariff battle that threatens to paralyse global trade.

The benchmark S&P/ASX 200 closed up more than 2%, representing its biggest one-day gain in more than two years.

Sign up for the Afternoon Update: Election 2025 email newsletter