SYDNEY, AAP – Shares were close to one per cent higher on the Australian market after Wall Street rebounded from the GameStop frenzy of last week.

The S&P/ASX200 benchmark index was higher by 62.4 points, or 0.93 per cent, to 6725.4 at 1200 AEDT on Tuesday.

The All Ordinaries was higher by 66.6 points, or 0.96 per cent, at 6989.4.

Information technology was best, higher by 3.0 per cent, followed by industrials, up 2.13 per cent.

Materials, financials, energy and consumer discretionaries all had gains of more than one per cent.

Earlier there were broad gains on Wall Street as investors clawed back losses from last week.

There continued to be big moves in stocks favoured by retail investors, such as GameStop, which fell 30 per cent.

Retail investors have been trying to inflict heavy losses on hedge funds by buying stocks the professionals have sold short.

US President Joe Biden was to meet with 10 moderate Republican senators to discuss their proposal to shrink his sweeping $US1.9 trillion US COVID-19 relief package, even as Democrats prepare to push legislation through Congress without Republican support.

In Australia, the Reserve Bank is due to give its first rate decision on the year at 1430 AEDT.

Economist expect no change to the record low cash rate of 0.1 per cent.

Meanwhile Western Australian authorities are yet to find another person infected with coronavirus after discovering a security guard at a quarantine hotel in Perth contracted a highly contagious strain.

Much of the state is in a five-day lockdown which ends on Friday.

On the ASX, online furniture trader Temple & Webster has claimed a 556 per cent rise in first-half earnings, however the figures did not impress investors.

The company said first-half earnings were $14.8 million for the six months to December 31, better than the $2.3 million for the same 2019 period.

Shares fell 7.42 per cent to $10.22.

The Commonwealth Bank said it has created a major client group within its business banking operations to provide dedicated service to large clients.

The bank also said it sold its 37.5 per cent interest in BoCommLife to MS&AD Insurance Group on December 10.

The sale proceeds were received during December.

Shares were higher by 1.65 per cent to $86.08.

Among major rivals, ANZ gained 0.74 per cent to $24.24, NAB rose 1.21 per cent to $24.10 and Westpac climbed 0.8 per cent to $21.38.

In the top performing sector, information technology, Afterpay rose 5.93 per cent to $143.94.

In mining, BHP gained 1.88 per cent to $44.95, Fortescue climbed 1.57 per cent to $22.62 and Rio Tino gained 3.43 per cent to $115.09.

In US results, the S&P 500 gained 59.62 points, or 1.6 per cent, to 3,773.86. The Dow Jones Industrial Average rose 229.29 points, or 0.8 per cent, to 30,211.91. The Nasdaq composite climbed 332.70 points, or 2.5 per cent, to 13,403.39.

The Aussie dollar was buying 76.31 US cents at 1200 AEDT, lower from 76.51 US cents at Monday’s close.