Australian shares gained 5.8 per cent and the Nikkei average in Japan rose 5.2 per cent on Tuesday to lead a rally across Asia Pacific stock markets on firmer oil and metal prices and relief at the US government’s $300bn bailout of Citibank.

Banks, property companies energy producer and miners made some of the biggest gains. The FTSE Asia Pacific index was 3.4 per cent higher at 148.52.