Australia’s share market has started October higher, with all sectors up and the materials sector a standout.

The S&P/ASX200 benchmark index was higher by 92.3 points, or 1.58 per cent, to 5908.2 points at 1200 AEST on Thursday.

The All Ordinaries index was up by 93.7 points, or 1.55 per cent, to 6103.

Materials led the gains, up 2.43 per cent, followed by property at 1.92 per cent.

All sectors rose by more than one per cent.

The ASX rise followed optimism in the US that politicians may deliver more aid to the economy.

All three major indexes surged after US House of Representative Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin expressed hope for a breakthrough in talks.

The Dow Jones Industrial Average rose 329.04 points, or 1.2 per cent, to 27,781.7 on Wednesday, the S&P 500 gained 27.53 points, or 0.83 per cent, to 3,363 and the Nasdaq Composite added 82.26 points, or 0.74 per cent, to 11,167.51.

There will be more stimulus for the Australian economy after the Morrison government unveiled plans to pump almost $1.5 billion into manufacturing.

The plan, part of Tuesday’s federal budget, targets mining, food and drink, medical products, recycling and clean energy, defence and space.

On the market, the miners were enjoying the rise. BHP was up by 3.08 per cent to $36.70, Rio Tinto rose by 2.33 per cent to $96.52 and Fortescue climbed by 3.19 per cent to $16.82.

Plumbing provider Reliance Worldwide was one of the best performers.

Its shares surged by about 10 per cent to $4.23 after September sales in the Americas increased by 29 per cent.

Sales were 24 per cent better in the Europe, Middle East and Asia region, and four per cent higher in Asia Pacific.

Moody’s has lowered its ratings for three parts of the AMP business from A3 to Baa2. These parts are AMP Group Holdings, AMP Finance Services and AMP Bank.

Moody’s improved the outlook for AMP Group to stable from “review for downgrade”.

Shares were higher by 0.95 per cent to $1.31.

Among the major banks, ANZ, the Commonwealth and Westpac were all more than one per cent higher. NAB was up 0.84 per cent to $17.90.

Meanwhile Flight Centre will close 90 travel agencies across the world, having already cut about 4000 jobs this year due to the pandemic ravaging the travel industry.

Many of the closures will be in Australia, although chief executive Graham Turner said this did not necessarily mean more redundancies.

Shares were higher by $2.17 per cent to $14.07.

The Aussie dollar was buying 71.76 US cents at 1200 AEST, up from 71.10 US cents after the close of trade on Wednesday.