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Australian Market Rises

The Australian stock market is rising for a third straight session on Tuesday following the overnight rally on Wall Street after biotechnology company Moderna reported "positive" phase one results for a potential coronavirus vaccine. Optimism about an economic recovery as more countries reopen their economies and a jump in crude oil prices also lifted stocks.

The benchmark S&P/ASX 200 Index is adding 129.40 points or 2.37 percent to 5,589.90, after rising to a high of 5,606.80 earlier. The broader All Ordinaries Index is advancing 127.00 points or 2.29 percent to 5,684.50. Australian stocks closed higher on Monday.

In the oil sector, Oil Search is climbing more than 8 percent, Santos is gaining almost 6 percent and Woodside Petroleum is rising more than 4 percent after crude oil prices jumped up more than 8 percent overnight.

Among the big four banks, ANZ Banking is gaining almost 5 percent, Westpac is rising more than 4 percent, National Australia Bank is higher by almost 4 percent, and Commonwealth Bank of Australia is advancing almost 2 percent.

In the mining space, BHP is rising more than 4 percent, Rio Tinto is higher by 4 percent and Fortescue Metals is gaining more than 3 percent.

Bucking the trend, gold miners are lower after safe-haven gold prices snapped a four-day winning streak to decline more than 1 percent overnight. Evolution Mining is lower by more than 1 percent and Newcrest Mining is declining almost 1 percent.

James Hardie Industries reported a 6 percent increase in full-year profit on higher net sales. The building products manufacturer's shares are climbing almost 11 percent.

Tabcorp Holdings said it will not pay a full-year dividend to shareholders amid the COVID-19 pandemic uncertainty and has arranged more financing with banks to boost liquidity. The betting and gaming giant's shares are rising more than 2 percent.

In economic news, the Reserve Bank of Australia will today release the minutes from its monetary policy meeting on May 5. At the monetary policy meeting, the RBA kept its interest rate at a record low 0.25 percent and the targeted yield on three-year government bonds at around 0.25 percent.

Australia will also provide April figures for new home loans today.

In the currency market, the Australian dollar is higher against the U.S. dollar on Tuesday. The local unit was quoted at $0.6517, up from Monday's close of $0.6432.

On Wall Street, stocks rallied on Monday after Moderna reported "positive" phase one results for a potential coronavirus vaccine. The biotechnology company said an early-stage human trial for a vaccine produced antibodies in all 45 participants. Energy stocks also saw substantial strength on the day, benefiting from a sharp increase by the price of crude oil.

The Dow soared 911.95 points or 3.9 percent to 24,597.37, the Nasdaq surged up 220.27 points or 2.4 percent to 9,234.83 and the S&P 500 jumped 90.21 points or 3.2 percent to 2,953.91.

The major European markets also showed strong moves to the upside on Monday. While the German DAX Index spiked by 5.7 percent, the French CAC 40 Index jumped by 5.2 percent and the U.K.'s FTSE 100 Index surged up by 4.3 percent.

Crude oil prices moved higher on Monday as positive news from biotech firm Moderna Inc. about an experimental COVID-19 vaccine, and reopening of businesses in several countries across the globe eased worries about outlook for energy demand. WTI crude for June gained $2.39 or about 8.1 percent at $31.82 a barrel.

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