Aust shares up 0.5 per cent in broad rally

The Australian share market is trading higher, led by gains in consumer and materials shares, amid a broad based rally in Asian markets following a strong close on Wall Street overnight.

The S&P/ASX200 benchmark index was higher by 33.9 points, or 0.51 per cent, to 6698.7 at 1230 AEDT on Tuesday. The index had risen more than 0.7 per cent in early trade.

The All Ordinaries was up 38.8 points, or 0.56 per cent, to 6956.3.

Local investors took their cue from overnight gains on Wall Street on hopes of economic recovery after US President Donald Trump on Sunday signed a $US2.3 trillion pandemic bill.

A Brexit deal between the UK and European Union last week also bolstered sentiment.

Other Asian markets, including Japan, also climbed between 0.5 and 1.0 per cent higher.

Materials and energy shares were trading higher, after oil prices gained further ground.

BHP shares were up 0.2 per cent, while Fortescue rose 1.5 per cent. Origin Energy and Woodside shares were up nearly 1.0 per cent.

Financials added to their winning run, with each of the Big Four banks trading around 1.0 per cent higher.

Consumer stocks, including Coles, rival Woolworths and retailer Harvey Norman saw gains in early trade.

A2 Milk shares climbed a further 5 per cent to $11.52 after the company on Thursday said it would buy a 75 per cent stake in New Zealand dairy company Mataura Valley Milk, which makes infant formula and milk powder, and sells to China.

Meanwhile, sentiment was slightly dampened after the Sydney coronavirus cluster rose by three infections to 129. But there are worrying signs the virus has jumped containment lines after three other cases have popped up in Wollongong on the south coast.

The Aussie dollar was buying 75.93 US cents at 1230 AEDT, slightly higher from 75.81 US cents at Thursday’s close.

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