Investors have been pushing prices higher on the Australian share market after more enthusiasm about possible coronavirus vaccines, and Queensland officials relaxed border restrictions.
The S&P/ASX200 benchmark index was up 77.5 points, or 1.18 per cent, to 6639.1 at 1200 AEDT on Tuesday.
The All Ordinaries gained 78.7 points, or 1.16 per cent, to 6850.7.
All sectors were higher, although energy was the only one with gains of more than two per cent. It rose 2.77 per cent.
AstraZeneca became the latest major drugmaker to say its vaccine could be about 90 per cent effective. Oxford University has reported a similar level of success.
The news helped US markets close higher.
Investors have gained more certainty about the US administration since trade closed, after President Donald Trump wrote on Twitter that he is directing his team to co-operate on the transition of power.
Mr Trump vowed to keep up his fight to prove electoral fraud from the US election this month. However his decision means a smoother transition than feared for president-elect Joe Biden.
Meanwhile, Australia’s economy will benefit when Queensland reopens its border to NSW residents on December 1.
Queensland officials expect to do the same for Victoria.
The decision comes after NSW went 28 days without community transmission of coronavirus.
On the ASX, the best performer of large companies was Imugene, which specialises in the treatment of cancer.
Its shares were up 17.39 per cent to 13 cents after it claimed an immunotherapy it is developing can reduce the death rate for people with gastric cancer.
Also in health, pharmaceutical group Mayne Pharma’s revenue fell nine per cent for the first four months of the financial year, impacted by a weaker US dollar.
Mayne chief executive Scott Richards on Tuesday told the company’s annual general meeting that revenue to the end of October was $140 million.
Shares were up 1.4 per cent to 36 cents.
Beach Energy was among the best of the energy suppliers thriving on the expectation of more travel should a coronavirus vaccine be confirmed.
Its shares rose 9.03 per cent to $1.87.
Travel companies were also higher.
Qantas shares rose 2.98 per cent to $5.52, while Webjet was up 2.89 per cent to $5.51.
Among the big banks, ANZ gained 2.96 per cent to $22.94, the Commonwealth was up 1.31 per cent to $80.65, NAB rose 2.15 per cent to $23.23 and Westpac jumped 2.91 per cent to $20.51.
In mining, BHP had a 2.94 per cent rise to $38.14, Rio Tinto crept up 2.24 per cent to $103.15 and Fortescue improved by 2.49 per cent to $18.05.
In the US earlier, the S&P 500 rose 20.05 points to 3,577.59. The Dow Jones Industrial Average gained 327.79 points, or 1.1 per cent, to 29,591.27. The technology-heavy Nasdaq composite added 25.66 points, or 0.2 per cent, to 11,880.63.
The Aussie dollar was buying 72.99 US cents at 1200 AEDT, lower from 73.13 US cents at Monday’s close.