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The Australian share market has surged by more than a percentage point to hit another 11-year high amid indications Chinese-US trade tensions could be easing.

The benchmark S&P/ASX200 index finished up 78.1 points, or 1.19 per cent, to 6,648.1 points at 1615 AEST on Wednesday, while the broader All Ordinaries was up 6,728.5 points, or 1.21 per cent, to 6,728.5.

The Aussie dollar is buying 68.78 US cents, from 68.39 US cents on Tuesday.