Australian stocks have rallied after the local market posted its worst day for 2020 amid profit warnings and fears about the deadly virus outbreak in China.

The benchmark S&P/ASX200 index was up 19 points, or 0. 27 per cent, at 7,107 points at 1015 AEDT while the broader All Ordinaries index was 19.8 points, or 0.28 per cent, higher at 7,218.8.

It is regaining ground lost on Thursday as shares fell for just the fourth time in 2020 after days of record highs

Overnight US share markets posted a mixed performance overnight as global markets fell amid fears about the economic impact of a deadly virus in China.

On the local market, Insurance Australia Group shares were down more than five per cent at the open after it warned shareholders the hailstorms that pounded Canberra, Melbourne and Sydney will hit its earnings.

IAG shares were down 40.5 cents, or 5.25 per cent, at $7.315 at AEDT.

The US dollar was buying 68.49 cents at 1015 AEDT, down from 68.59 cents at Thursday’s close.