Australian stocks rallied in afternoon trading Friday but not by enough to recover all of the morning's sell-offs, which followed heavy falls on Wall Street. The ASX 200 index dropped 70 points, or 1.3 per cent, to close at 5,237 after giving up nearly 3 per cent at the opening bell. Traders called the morning correction extreme, leading investors to return to the market in the afternoon to buy some bargains. Mining giants BHP Billiton and Rio Tinto clawed back ground after falling 3 per cent. Santos and other oil-related stocks were sharply higher, as was leading gold producer Newcrest on strengthening bullion and oil prices. Newcrest put on 11 per cent.
