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

The ASX 200 is being pulled and pushed by international forces, and was led higher on Tuesday by the US futures market. Photograph: Lisa Maree Williams/Getty Images

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.