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S&P/ASX 200 surges 3% as bargain hunters arrive

Crash? What market crash?

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) fell as much as 1.4% earlier in the session but it has since skyrocketed, providing local investors with a much needed opportunity to catch their breath.

As at the time of writing, the ASX is trading 3%, or 150 points higher at 5152 points, reversing much of yesterday’s 4.1% decline.

Leading the upward charge is Westpac Banking Corp (ASX: WBC) and Commonwealth Bank of Australia (ASX: CBA) which are up 5.3% and 3.9% respectively. Meanwhile, Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) are up 4.2% and 4.9% as well.

Somewhat surprisingly, the miners are also flexing their muscles despite a heavy fall in the price of iron ore and oil overnight. Iron ore fell 5% while Brent oil crashed 6.35%, yet BHP Billiton Limited (ASX: BHP), Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG) are up 2.2%, 3.4% and 11.4% each.

South32 Ltd (ASX: S32), which was recently spun-off from BHP Billiton, has also rocketed 11% higher to $1.56 per share.

Unfortunately, there is no telling whether the market will continue to recover over the coming days and weeks, or if today’s reprieve will be only temporary.

What today’s jump does show however, is that bargain hunters are recognising the opportunities on offer across the ASX.

While there may be more volatility in the near future, the long-term bodes well for those investors who remain patient, and better yet, for those who buy high-quality companies while they’re trading at fantastic prices.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. You can follow Ryan on Twitter @ASXvalueinvest.

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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