Reuters New Zealand

Australia stocks up 1.1 percent; NZ's Nuplex jumps

Tuesday March 24, 05:21 PM

(Adds Nuplex)

WELLINGTON, March 24 (Reuters) - Australian shares rose 1.1 percent on Tuesday, but eased off earlier peaks as initial enthusiasm over a U.S. plan to absorb $1 trillion of banks' toxic assets faded.

The benchmark S&P/ASX 200 index .AXJO was up 39.4 points at 3,589.7 by 0410 GMT, after earlier gaining as much as 2.6 percent to its best intra-day level since mid-January.

The index rose 2.3 percent on Monday to its highest close in five weeks.

New Zealand's NZX-50 index .NZ50 gained 1.7 percent to 2,635.3.

STOCKS ON THE MOVE

* New Zealand resins manufacturer Nuplex (NZX: NPX.nz) raced up nearly 40 percent after saying after the market close on Monday that its earnings remained on track and its rights issue was sufficient to meet its medium-term capital needs. [ID:nWLF001282]

0330 GMT

* Airline Virgin Blue (ASX: VBA.ax) gained 18 percent, or 4 cents, to 26 cents, extending Monday's 10 percent gain, after signing a deal with United States carrier Delta Air Lines DAL.N.

0305 GMT

* Gold miners Lihir Gold LGL.AX and Newcrest Mining (ASX: NCM.ax) fell just over 1 percent as gold prices fell on the rally in stocks. (See [GOL/] for more on the gold market.)

0115 GMT

* Australian resources firm Straits Resources Ltd (ASX: SRL.ax) rose 16 percent after Thailand's PTT International PTT.BK said on Monday it would buy some of Straits' coal and salt assets in a $335 million deal.

0105 GMT

* Debt-laden miner Oz Minerals Ltd OZL.AX fell more than 14 percent after the government extended its review into a $1.8 billion rescue bid by Chinese state-owned Minmetals. [nSYU006235]

2315 GMT ($1=1.42 Australian Dollar) (Reporting by Adrian Bathgate)

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