The Australian share market has finished almost 1.5 per cent higher, buoyed by energy and materials stocks.

CMC Markets analyst Ric Spooner said strength in local stocks had been building since Friday following news that China’s economy did not need a currency devaluation.

“The market has reacted to that story,” Mr Spooner said.

Meanwhile, rallies on Chinese and Japanese share markets on Tuesday had also assisted local investors.

News that Saudi Arabia and Russia are meeting to discuss the oil market boosted oil stocks.

“Rightly or wrongly, some people expect improvements in the oil market,” Mr Spooner said.

Energy stocks were up 4.8 per cent, despite no talk of production cuts, he said.

Woodside Petroleum, which reports its full year results on Wednesday, was up 5.7 per cent at $29.54, Santos gained 5.9 per cent to $3.41 and Origin Energy was seven per cent higher at $3.96.

US trading boards were closed overnight for that country’s Presidents Day national public holiday.

Locally, mining giant BHP Billiton was 3.8 per cent higher at $16.59 and Rio Tinto was up 2.3 per cent higher at $43.20.

Shares in investor darling, CSL gained $1.57 cents to $106.00 after the vaccine giant lifted its half year net profit 3.8 per cent, helped by strong revenue growth of key products.

Rail and ports operator Asciano was flat at $8.90 after it recommended shareholders accept a $9.01 billion offer from a consortium led by local stevedore Qube Holdings.

Commonwealth Bank, which is trading ex-dividend, fell 2.3 per cent to $72.60.

KEY FACTS:

* At the close on Tuesday, the benchmark S&P/ASX200 index was 66.5 points, or 1.37 per cent, higher at 4,910.

* The broader All Ordinaries index was up 68.2 points, or 1.39 per cent, at 4,961.6.

* The March share price index futures contract was 89 points higher at 4,874, with 35,184 contracts traded.

* National turnover was 2.5 billion securities traded, worth $6.6 billion.