The Australian share market has closed almost two per cent higher on the back of an agreement between Greece and its European creditors.

The big miners led the way deep into positive territory, with a sharp fall in China’s Shanghai Composite index failing to dampen the mood of local investors.

Wealth Within analyst Janine Cox said the good day on the market was due to a combination of factors.

“There was a pleasing response to the news on Greece and positivity around the start of the reporting season in the US,” Ms Cox said.

“Indonesia’s decision regarding Australian livestock was not a major issue but may add to concerns of investors.”

In the resources sector, global miner BHP Billiton was up 69 cents, or 2.61 per cent, at $27.10, Rio Tinto grew $1.74, or 3.38 per cent, to $53.27, and Fortescue Metals Group gained 1.5 cents to $3.41.

Among the major banks, ANZ was up 30 cents at $32.20, Commonwealth Bank rose $1.07 to $86.25, National Australia Bank gained 59 cents to $33.47, and Westpac was higher by 84 cents to $33.61.

In company news, Australian Agricultural Company shed one cent, or 0.73 per cent, to $13.55 after Indonesia’s decision to cut its Australian cattle intake.

In economic news, national Australia Bank’s Business confidence barometer jumped to its highest level in almost two years, rising two points in June to 10 points – the strongest reading since September 2013.

KEY FACTS

* On Tuesday, the benchmark S&P/ASX200 index was up 104.2 points, or 1.9 per cent, at 5577.4 points.

* The broader All Ordinaries index was higher 101.5 points, or 1.86 per cent, at 5561.9 points.

* The September share price index futures contract gained 113 points at 5518 points, with 36,198 contracts traded.

* National turnover was 1.5 billion securities worth $4.66 billion.