ASX surges again, this time on COVID-19 vaccine hope

After rallying on the certainty of the US Presidential election result, the ASX has again surged higher, this time on coronavirus vaccine hopes.

The Australian sharemarket climbed to an eight-month peak on Tuesday after Wall Street reached record highs on the back of positive data from a COVID-19 vaccine trial, fuelling economic recovery hopes and putting a rocket up oil stocks.

The announcement from pharmaceutical company Pfizer and its German partner that trial data indicated their vaccine was more than 90 per cent effective sent the US market soaring, with double digit gains among energy stocks, also seen on the local bourse.

The benchmark S&P/ASX200 index roared as high as 6436 in early trade before settling back to 6341, up 0.6 per cent, while the All Ordinaries Index rose 0.4 per cent to 6544.

“Energy by far is the biggest winner,” CommSec market analyst James Tao said, adding it was the fourth-straight trading day of gains.

“Oil demand expectations (were) certainly buoyed by the fact that we could see reopening of economies and borders.”

Oil Search surged 16.55 per cent to $3.31, Beach Energy leapt 14.8 per cent to $1.43, Santos jumped 12.18 per cent to $5.62, Cooper Energy gained 10.94 per cent to 35.5 cents and Woodside rose 7.26 per cent to $19.66.

Pharmaceutical company Pfizer has raised hopes with trial results for its COVID-19 vaccine. Picture: David Dee Delgado/Getty Images/AFP

Travel stocks were also stronger, with Corporate Travel Management spiking 15.83 per cent to $19.83, Qantas putting on 8.33 per cent to $5.07 and Flight Centre appreciating 9.26 per cent to $15.70.

Westfield shopping centre operator Unibail-Rodamco-Westfield was the stellar performer after shareholders voted down a proposed share issue, prompting the company to say it would have to review all possible alternatives to strengthen its finances by reducing debt.

It also heralded the vaccine development as a “breakthrough” and “tremendous news” that could have a significant positive impact on retail real estate in general and the company in particular as it sells off assets.

Shares in the company finished 43.55 per cent higher at $4.12.

Auckland-headquartered building products company Fletcher Building added 16.5 per cent to $4.87 after providing a positive trading update for the new financial year amid robust demand for new houses.

The big four banks also played a major role in driving the ASX higher, with ANZ adding 5.05 per cent to $20.19, Commonwealth Bank up 2.97 per cent to $72.40, National Australia Bank rallying 7.59 per cent to $21.26 and Westpac firming 5.18 per cent to $18.68.

Mining giant Rio Tinto eased 0.68 per cent to $95.44 while BHP inched 0.42 per cent higher to $36.03.

The Aussie dollar was fetching 72.85 US cents, 55.24 British pence and 61.56 Euro cents in afternoon trade.