SYDNEY, AAP – Share market investors have given a thumbs-up to a Reserve Bank decision to extend its tapering timeline for bond purchases.

The ASX rallied and recovered earlier losses after the central bank pushed back the possible end of its bond buying from December to February.

The bond buying helps keep market rates low amid the economic trouble caused by the coronavirus.

The benchmark S&P/ASX200 index closed up by 1.8 points, or 0.02 per cent, to 7530.3.

The All Ordinaries closed down by 2.6 points, or 0.03 per cent, to 7826.4.

The Australian dollar was buying 74.19 US cents at 1620 AEST, lower than 74.40 US cents at Monday’s close.