The Australian share market has risen for more than one per cent for a second straight day as sentiment cautiously improved for the country’s economic prospects.

The S&P/ASX200 benchmark index finished Tuesday on the highs of the day up 87.3 points, or 1.64 per cent, to 5,407.1, while the All Ordinaries index gained 88.6 points, or 1.64 per cent, to 5,478.1.

One Australian dollar was buying 64.57 US cents, up from 63.90 US cents at Monday’s close.