The Australian stock market has hit its highest level since June 11 after US drugmaker Pfizer said a coronavirus vaccine being developed with German firm BioNTech was testing well in early-stage human trials.

The benchmark S&P/ASX200 index finished up 98.3 points, or 1.66 per cent, at 6,032.7 points, in its best performance in two weeks.

The broader All Ordinaries index finished up 101.3 points, or 1.68 per cent higher, at 6,142.3.

The Australian dollar was buying 69.29 US cents, up from 68.98 US cents at the close of trade on Wednesday.