Australia’s share market finished in positive territory after a Reserve Bank decision not to cut rates appeared to encourage investors.

The S&P/ASX200 benchmark index closed higher by 20.5 points, or 0.35 per cent, to 5962.1 on Tuesday.

The index was slightly down at 5938.2 just four minutes after the RBA decision to keep the rate at 0.25 per cent. Yet it soon rose to a session high of 5963.9 before easing.

The All Ordinaries index finished up by 29.1 points, or 0.47 per cent, to 6164.2.

The federal budget, due on Tuesday night, and US President Donald Trump leaving hospital after his coronavirus infection have also encouraged investors.

The Aussie dollar was buying 71.81 US cents at 1622 AEDT, the same value at the close of trade on Monday.