SYDNEY/WELLINGTON, June 29 (Reuters) - Australian and New Zealand shares rallied on Wednesday, as global markets found their footing after the Brexit shock, with the Australian market gaining 0.68 percent and NZ stocks adding 1.09 percent.
The S&P/ASX 200 index .AXJO rose 34.63 points to 5,137.9 by 0133 GMT. Miners and financials led the gains.
The S&P 500 .SPX bounced 1.8 percent overnight after two days of hefty losses in the wake of Britain's vote to leave the European Union.
"There's a view that Brexit isn't going to damage every single sector of the Australian economy," said Aurora Funds Management senior portfolio manager Hugh Dive.
"There's also a view that we are going to see a rate cut in Australia and a view that we are going to see the Fed cutting back in the U.S."
U.S. Federal Reserve Governor Jerome Powell said the Brexit result had shifted global risks "to the downside". Investment Mangement BTT.AX shares added 6.24 percent on Wednesday, recouping some of the stock's heavy losses since Friday, which may have been as much as 27 percent of its value.
Australia's Big Four banks all climbed, led by Australia and New Zealand Banking Group ANZ.AX , which rose 1.55 percent. National Australia Bank NAB.AX gained 1 percent, Westpac Banking Corporation WBC.AX added 0.95 percent and Commonwealth Bank CBA.AX added 0.6 percent.
Miners BHP Billiton (LON:BLT) Ltd BHP.AX and Rio Tinto (LON:RIO) RIO.AX rose on a five-week high for the iron ore price, with BHP stocks gaining 1.9 percent and Rio stocks adding 2.04 percent.
Australian health, telco and energy stocks all rose, led by Origin Energy ORG.AX which added 2.94 percent and Caltex CTX.AX , which rose 3.14 percent, its largest intra-day gain since December, on news of a positive profit outlook. dragged, however, with Duet Group DUE.AX losing 2.8 percent and APA Group APA.AX shares falling 1.67 percent.
New Zealand's benchmark S&P/NZX 50 index .NZ50 rallied 1.09 percent or 73.11 points to 6,789.69 on Wednesday as the market tracked a global equities bounce-back from the heavy losses caused by Brexit.
Accounting software company Xero XRO.NZ led gains, rising 5.38 percent after the firm, which earns almost a fifth of its revenue in the United Kingdom, dropped 8 percent in the wake of the "leave" vote.
A2 Milk ATM.NZ rose 4 percent and Property Industries PFI.NZ rose 2.86 percent.
Energy companies also gained with Meridian Energy MEL.NZ up 3.2 percent and Genesis Energy GNE.NZ rising 2.6 percent.
Shares in Fonterra's FCG.NZ fund FSF.NZ , which provides investor exposure to the farmer-owned dairy exporter, rose 0.75 percent.
Telecommunications company Spark SPK.NZ led losses, edging down 0.57 percent.