Investors have been on a blue-chip buying spree, lifting the stock market more than five per cent as they snapped up bank, supermarket, healthcare and mining stocks at bargain prices.

The benchmark S&P/ASX200 closed up 291.4 points, or 5.83 per cent, at 5,293.4 points after posting its worst day on record on Monday.

The broader All Ordinaries index was up 274.6 points, or 5.43 per cent, at 5,332.8 points.

The Aussie dollar was buying 61.17 US cents, up from a nadir of 60.96 US cents on Monday, which was its lowest level against its US counterpart since 2003.