The S&P/ASX 200 rose 0.5 per cent, or 36.1 points, to 7364.7 on Tuesday, buoyed by hopes that the Reserve Bank was approaching the end of its tightening cycle.

InvoCare soared 35 per cent to $12.08 after receiving a $1.8 billion takeover bid from private equity group TPG.

Megaport sank 15 per cent to $4.88 after its chief executive Vincent English resigned.

Sayona Mining jumped 4.3 per cent to 24.5¢ on news that it was selling $54.9 million worth of shares at 31.5¢ apiece.

Rio Tinto fell 0.3 per cent to $$125 after being fined $US15 million ($22.3 million) by the SEC relating to an alleged bribery scheme.