Australia shares gain 1 pct; banks lead, Rio bounces

By Mette Fraende and Denny Thomas
SYDNEY, March 26 (Reuters) - Australian shares rose 1 percent
on Thursday, rising for a fourth straight day, with financials
buoyed by hopes of a revival in global growth on the back of
recent U.S. government efforts to ease the credit crisis.
Global miner Rio Tinto Ltd turned positive, ending
with a 1.4 percent gain, after its chief financial officer said
Rio could sell more assets and reschedule debt if Chinalco's
proposed $19.5 billion deal with Rio is not approved. .
A late rally in U.S. stocks on the back of unexpectedly
strong housing and durable goods data also helped supported
sentiment, traders said. 'Ever so slowly there's the smallest little current of less
than disastrous news coming out,' said Peter Wright, dealer at
Burrell & Co.
The benchmark S&P/ASX 200 index finished 37.3 points
higher at 3,646.6, based on the latest available data. The index
has risen 9 percent so far in March.