Australian shares hit seven-week high as gains continue

Markets responded well to news US President Donald Trump would soften automotive tariffs on foreign parts for US cars, in another step back from a more hawkish trade war stance.

Ten of 11 local sectors finished higher, with energy and utilities both lifting more than two per cent and materials pushing the bourse higher with a 1.4 per cent gain.

The Australian dollar is buying 64.16 US cents, up from 63.81 US cents as the greenback continued to flounder in the wake of US trade policy.