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SYDNEY, AAP – Australia’s share market was higher and having its second consecutive day of broad-based gains after whopping rises on US markets.

The S&P/ASX200 benchmark index was higher by 40.8 points, or 0.60 per cent, to 6830.4 at 1200 AEDT on Tuesday.

The All Ordinaries was higher by 44.3 points, or 0.62 per cent, at 7087.0.

The big sectors of materials and financials had gains of 0.94 per cent and 0.85 per cent respectively.

The only sector with higher gains was information technology, up 1.28 per cent.

The only sectors lower were energy and property, each down by less than one per cent.

The generally buoyant mood comes after US investors resumed trade in the first session since the US House of Representatives passed President Joe Biden’s $US1.9 trillion ($A2.5 trillion) coronavirus relief package on Saturday.

The bill must still pass the Senate.

The Dow Jones Industrial Average surged 1.95 per cent to end at 31,535.51 points, while the S&P 500 gained 2.38 per cent to 3,901.82. The Nasdaq Composite jumped 3.01 per cent to 13,588.83.

US bond yields eased after a swift rise last month on expectations of accelerated inflation due to bets on an economic rebound.

In Australia, the Reserve Bank’s position on higher bond yields, and the cost of borrowing, may be the main interest in its monthly monetary policy decision at 1430 AEDT.

The bank is not expected to change the cash rate from the record low 0.1 per cent.

Meanwhile, approvals to build houses dropped with a thump in January, after the federal government’s HomeBuilder grant was reduced.

Australian Bureau of Statistics figures showed private sector housing approvals tumbled 12.2 per cent to 12,125 in January.

Approvals were still 38 per cent higher than a year earlier.

On the ASX, one of the big movers was mining exploration company Liontown Resources, which said it had likely discovered high-grade gold in Western Australia.

Shares rose 17.04 per cent to 51 cents after Liontown said the first deeper hole drilled at its Moora project showed the potential for gold.

The project is 150km from Chalice Mines’ Julimar nickel, copper and gold discovery.

Among the major miners, BHP was better by 0.83 per cent to $50.51, Fortescue was up 0.13 per cent to $22.71 and Rio Tinto improved by 1.98 per cent to $130.23.

BlueScope Steel rose 4.23 per cent to $17.98.

In banking, ANZ was best of the big four, up 1.39 per cent to $26.96. The others were higher by less than one per cent.

Macquarie had a 1.8 per cent rise to $147.97.

Market heavyweight CSL inched higher by 0.08 per cent to $270.51.

The Australian dollar was buying 77.67 US cents at 1200 AEDT, higher from 77.48 US cents at Monday’s close.