Westpac tops $100b in bank rally Banks were in demand today as investors chased higher-yielding stocks. Westpac has become the latest stock to top $100 billion in market capitalisation, as the big banks led a broad-based share market rally. The benchmark S&P/ASX200 jumped 86.2 points, or 1.7 per cent, to 5102.4, its biggest one day gain in more than a month as investors bet that lower than expected inflation data would trigger another rate cut by the Reserve Bank. The broader All Ordinaries added 81.6 points, or 1.6 per cent, to 5084.2. The financial sector was the biggest driver on the market, surging 2.1 per cent, as investors chased higher-yielding stocks. Westpac is just the third company after BHP Billiton and CBA to be worth more than $100 billion, with its market capitalisation reaching $100.9 billion after the day's rally. Westpac shares pushed up 2.5 per cent to $32.50, a record high. Commonwealth Bank shares also hit a record high, jumping 2.4 per cent to $71.70, which took the bank's market capitalisation to $115 billion. Discounting BHP's London shares, CBA is the biggest stock on the local market. ANZ and NAB also saw strong gains, rising 2.2 per cent to $29.90 and 2.2 per cent to $32.76 respectively. ""It's all about yield, look at the big four banks, Telstra, all up, really strongly. There is an insatiable appetite for yield,"" said RBS Morgans senior trader Luke McElwaine. Telstra shares added 0.8 per cent to finish at $4.88, their highest point since February 2008. Markets around the Asia-Pacific region also joined the rally with the Nikkei closing 2.3 per cent higher and China's CSI300 rising as much as 2.5 per cent. There were no flow-on effects from a mini-crash overnight in the US, resulting from a tweet sent out after the hacking of the Associated Press account which stated there had been two explosions at the White House. US stocks plunged about 1 per cent, before recovering upon news of the hacking. Mr McElwaine said quantitative easing around the world was supplying cash to investors who were looking for strong rates of return and Australian shares, especially banks, fit that mould. Local shares also enjoyed a boost from inflation figures which came in lower than expected. Inflation increased 0.4 per cent quarter-on-quarter and 2.5 per cent year-on-year. The reading is within the Reserve Bank's target range and as such is unlikely to give cause to a rate cut next month, according to ANZ senior economist Riki Polygenis. ""The RBA was already very comfortable on the inflation front and has been focusing more on the weakness in non-mining activity and labour market data,"" she said. While stocks received a boost from the inflation data, the Australian dollar fell a quarter of a cent and was buying $US1.0250 in late trade, close to a six-week low of $US1.0221, reached yesterday. Stocks rose across all sectors. Consumer staples and consumer discretionary both gained 1.3 per cent, materials rose 1.1 per cent and telecommunications finished 0.8 per cent higher. Among the miners, Rio pushed up 1.3 per cent to $54.68, while rival BHP gained 1.1 per cent to $31.70. Fortescue was the biggest drag on the market, slipping 4.2 per cent to $3.61. Virgin Australia enjoyed another solid day, adding 1.1 per cent to 46 cents, as Singapore Airlines" increased its stake to 19.9 per cent to become the company's largest shareholder. Woodside Petroleum, a day after announcing a special 61 cents dividend and surging 9.7 per cent, added another 2.1 per cent to $38.74, with the company stating it is committed to developing the Browse offshore gas resource.