Australian shares have hit a fresh record high amid surging global investor optimism ahead of a looming US-China trade deal.
The benchmark S&P/ASX200 index surged in the final half-hour of trading to finish Tuesday on the highs of the day at 6,962.2 points, up 58.5 points - or 0.85 per cent - from Monday.
The broader All Ordinaries index closed up 57.8 points, or 0.82 per cent, to 7,078 points.
"It's such a good day," said Bell Direct market analyst Jessica Amir. "It's been a stellar day, the market rose more than expected."
The gains came after the US Treasury Department dropped its designation of China as a currency manipulator ahead of the two economic superpowers signing an interim trade deal.
The bushfire crisis may have also perversely helped market sentiment by increasing the odds that the Reserve Bank will cut the cash rate for a fourth time in eight months in February, Ms Amir said.
The ASX200 has gained 278.1 points - or 4.2 per cent - since the start of the year, and seems poised to soon smash through the 7,000 mark after on Tuesday breaking an all-time high set just last week.
Every sector was up, with consumer staples gaining the most, 1.7 per cent, as Woolworths climbed 2.5 per cent to $38.38 and Elders soared 8.3 per cent to $6.79 on a boost in cattle prices.
"This a huge comeback stock," Ms Amir said of Elders, which lost 7.2 per cent last year and 13.6 per cent in 2018.
Blood products giant CSL rose 0.7 per cent to $296.50 and burn products company Avita Medical rose 7.4 per cent to 72.5 cents.
Lithium miners Pilbara Minerals, Orocobre and Galaxy Resources were some of the biggest gainers, rising 11.4, 7.4 and 7.2 per cent, respectively amid hopes for an increase in the price of the vital electric battery component.
Overall the mining sector was up 1.2 per cent as BHP gained 1.3 per cent to $40.05, Rio Tinto climbed 1.9 per cent to $103.97 and South32 rose 3.6 per cent to $2.89.
Goldminers were mostly down as the price of the precious metal dipped, with Newcrest falling 1.2 per cent, Evolution Mining down 1.1 per cent and Northern Star down 0.9 per cent.
Noni B and Rockmans owner Mosaic Brands plunged 17.3 per cent to a two-year low of $1.87 after reporting that same-store sales were down eight per cent in the six months to December 29 because of the bushfire crisis.
Most of the big banks were higher with Commonwealth and ANZ both climbing 0.8 per cent to $83.17 and $25.20 respectively, and NAB gaining 0.5 per cent to $25.06.
Westpac was the outlier, falling 0.1 per cent to $24.57.
Investment manager Pendal Group fell 5.1 per cent to $8.53 after reporting that funds under management only grew one per cent in the December quarter.
EML Payments gained 7.2 per cent to a new $5.23 after confirming it had signed a deal to supply NSW Health with reloadable cards for salary packaging purposes.
The Australian dollar was buying 69 US cents, down from 69.15 US cents at Monday's close.
ON THE ASX:
* The benchmark S&P/ASX200 index closed up 58.5 points, or 0.85 per cent, at 6,962.2 points.
* The All Ordinaries was closed up 0.82 per cent, or 57.8 per cent, at 7,078 points.
* The SPI200 futures index closed up 68 points, or 0.99 per cent, at 6,909 points.
CURRENCY SNAPSHOT AT 1630 AEDT:
One Australian dollar buys:
* 69.00 US cents, from 69.15 US cents on Monday
* 75.96 Japanese yen, from 75.81 yen
* 61.95 euro cents, from 62.15 cents
* 53.10 British pence, from 53.08 pence
* 104.11 NZ cents, from 104.05 cents