SYDNEY, AAP – The All Ordinaries index has hit a record high and the ASX200 was on the verge of following as investors enjoyed a one per cent rise.

The All Ordinaries rose as high as 7429 points in the second hour of trade, bettering the previous record of May 10.

The ASX200 has been as high as 7183.4 on Friday, close to its record 7197.2, set in February last year.

Materials shares were powering the indices and higher by 2.33 per cent.

Iron ore prices rose overnight which helped the big miners.

BHP gained 3.33 per cent to $48.36, Fortescue climbed 1.07 per cent to $22.51, and Rio Tinto rose 3.37 per cent to $123.92.

There were gains of more than one per cent for shares in energy, industrials, consumer staples and financials.

At 1200 AEST, the benchmark S&P/ASX200 index was up by 78.7 points, or 1.10 per cent, to 7173.6.

The All Ordinaries was higher by 74.3 points, or 1.01 per cent, to 7418.3.

US stocks closed little changed but investors were encouraged by economic data.

Weekly unemployment claims fell to a pandemic low and the US economy grew at a solid rate of 6.4 per cent during the first quarter.

However the growing economy has raised concerns about inflation data due later this week.

Oil prices rose after the positive US data as well as more detail on possible supply from Iran.

OANDA analyst Edward Moya said investors learned that if the Iranian nuclear deal is revived, it will not include an immediate removal of economic sanctions.

This would prevent the oil market being quickly flooded with excess supply.

Oil Search was one of the big improvers of the majors, with shares rising 2.88 per cent to $3.74.

Santos gained 2.22 per cent to $6.88.

Meanwhile Victoria has recorded four local coronavirus infections on the first day of its seven-day statewide lockdown.

The Melbourne cluster now has 30 infections.

On the ASX, Tabcorp revealed a third suitor for its wagering and Sky racing business – BetMakers Technology Group pitching a $4 billion offer.

BetMakers said its offer included $1 billion cash and $3 billion in BetMakers shares.

Last month UK-based Entain, which owns Ladbrokes and Foxy Bingo, improved its offer to $3.5 billion.

Investment group Apollo Management in May also raised its offer to $3.5 billion.

Shares in Tabcorp were higher by 2.47 per cent to $5.18, while shares in BetMakers were down by 13.75 per cent to $1.38.

Poultry provider Inghams jumped 8.59 per cent to $3.41 after raising its earnings forecast.

The company said full-year net profit after tax was expected to be between $80 million and $87 million.

Inghams said this was due to operational efficiencies and a reduced threat from the coronavirus.

The big four banks were all higher by at least one per cent.

Westpac was best of the group and rose 1.41 per cent to $26.46.

Bank of Queensland jumped 2.38 per cent to $9.03.

Building supplies group CSR was down 5.27 per cent to $5.57 as it traded ex-dividend.

The Australian dollar was buying 77.44 US cents at 1200 AEST, lower from 77.45 US cents at Thursday’s close.