The benchmark S&P/ASX200 (^AXJO) has finished 2.58 per cent higher, taking it to 6,156.30 points by the end of Tuesday trade.
The broader All Ordinaries index (^AORD) also finished higher, up 2.56 per cent to 6,268.80 points.
Vaccine hopes lifted the share markets higher today, despite Melbourne recording a horror rise in cases and growing calls for masks to be adopted by Sydney-siders.
The markets also weathered severe warnings from Reserve Bank of Australia governor Philip Lowe that Australia faces “economic scars” if the coronavirus recession isn’t addressed safely.
What happened at midday?
The ASX200 rose 1.25 per cent in midday trade, taking it to 6,076.50 points as of 12:16pm AEST.
The All Ordinaries was also higher, up 1.29 per cent to 6,191.40 points.
The surge came amid news that the new form of JobKeeper will see payments reduced and eligibility criteria reduced. However, the payments will continue until the March quarter.
Investors today were also waiting on the Reserve Bank of Australia’s governor Philip Lowe to speak at lunchtime, as well as keeping an eye out for the meetings from the Bank’s last monthly meeting.
What happened this morning?
The ASX200 jumped 0.54 per cent higher amid confirmation that JobKeeper will be extended until March.
That brought the ASX200 to 6,034.00 points at 10:05am AEST.
The All Odinaries also leaped 0.54 per cent higher to 6,145.10 points.
Investors are now waiting on the finer details of the new JobKeeper plan. It has already been confirmed that it will continue until March, albeit in a lower payment form. Businesses will also have to meet new eligibility tests, along with their workers.
Prime Minister Scott Morrison’s announcement has taken the edge off fears Australia was hurtling towards an economic cliff in September, when JobKeeper, the JobSeeker boost and some home loan deferrals were all due to expire at once.
What happened overnight?
Wall Street lifted slightly higher on Monday night US time after promising Covid-19 trial results emboldened investors.
Drugs from CanSino Biologics, AstraZeniza and from a Pfizer Inc and BioNTech partnership have all been safely administered, triggering positive responses.
The Dow Jones Industrial Average rose 8.92 points, or 0.03 per cent, to 26,680.87, the S&P 500 gained 27.11 points, or 0.84 per cent, to 3,251.84 and the Nasdaq Composite added 263.90 points, or 2.51 per cent, to 10,767.09.