Australian stocks have suffered through second day of major losses, although they rebounded from their lows on words that US researchers had developed an experimental coronavirus vaccine.

The benchmark S&P/ASX200 finished Tuesday down 111.7 points, or 1.6 per cent, at while the broader All Ordinaries index was closed down 111.6 points, or 1.58 per cent, at 6,953.8.

The Australian dollar was buying 66.12 US cents, up from 65.97 US cents on Monday.