"There is a lot of water to go under the bridge, but any slightly good news on that front is treated warmly by the market," said Grant Davies, an investment advisor at Hamilton Hindin Greene.
The market had been further supported by stronger than expected economic data in recent weeks, he said.
Asian markets were mixed, Australia's S&P/NZX 200 was up 1.6 per cent while Hong Kong's Hang Seng Index was down 0.3 per cent. That followed a strong night on Wall Street where the S&P 500 and the Nasdaq both gained roughly 1 per cent while the Dow Jones Industrial Index rose more than 2 per cent.
Davies said "the usual suspects", or stocks that have been hit hardest by virus related selling, were making gains on the local market in response to the vaccine news.
The benchmark was led higher by Vista Group International, a cinema software developer which is vulnerable to lockdowns. Its shares rose 4.2 per cent to $1.25, trimming its year-to-date loss to 63.6 per cent.
Auckland International Airport advanced 1.9 per cent to $6.09, Tourism Holdings rose 1.7 per cent to $1.80 and Air New Zealand increased 1.2 per cent to $1.305.
Oceania Healthcare advanced 3.1 per cent at $1. The stock has been touted as an alternative option to Metlifecare - in the process of being acquired by a private equity firm - for investors who want long-term exposure to the retirement sector.
Summerset Group Holdings advanced 2.4 per cent to $7.35 and Arvida Group rose 2 per cent to $1.51. Metlifecare crept closer to the $6 takeover price, rising 0.2 per cent to $5.90.
Fisher & Paykel Healthcare rose 2.8 per cent to $37.20.
Genesis Energy rose 2.8 per cent to $2.94, retracing some of its losses following the sudden announcement the Tiwai Point aluminium smelter would be closed next year.
Davies said the news was still rippling through the market as investors worked through the uncertainty the decision had injected into the energy sector.
Contact Energy rose 2.1 per cent to $5.72. The firm today announced it had rearranged its leadership team to focus on developing capacity and growing demand as the sector goes through a period of transition in preparation of the smelter's closure.
Trustpower fell 0.1 per cent to $6.93. It said in an operating report today that retail activity reduced during level 4 lockdown and has been slower to ramp back up than other market participants. Accounts decreased by approximately 2,000 across the quarter.
SkyCity Entertainment Group rose 2 per cent to $2.52. Research firm Jarden upgraded SkyCity's target price, bringing it to $2.85. The addition of equity from the recent capital raising and full earnings recovery now expected by financial year 2023, made the current valuation attractive, the analysts said.
Napier Port dropped 2.3 per cent to $3.45. The company said freight and bulk cargo volumes had rebounded from April but remained below last year's levels. Bulk cargo volumes were 24 per cent lower at 628,000 tonnes, with nine-month volumes down 13 per cent at 2.23 million tonnes.
New Zealand Refining Company posted the day's largest decline, falling 2.8 per cent to 69 cents.
