SYDNEY, AAP – Australia’s share market has had its best day in more than two months as investors became more comfortable with the Omicron variant.

The market closed higher by about one per cent on Tuesday and the biggest gains were in energy and health care.

The benchmark S&P/ASX200 index closed up 68.8 points, or 0.95 per cent, to 7313.9 points.

The All Ordinaries closed higher by 76.2 points, or 1.01 per cent, to 7605.2 points.

US markets had closed higher after infectious diseases expert Dr Anthony Fauci said the coronavirus Omicron strain did not look to have a great deal of severity.

The Australian dollar was buying 70.78 US cents at 1620 AEDT, higher from 70.19 US cents at Monday’s close.