At 10.15am (AEDT), the benchmark S&P/ASX200 index was up 97.9 points, or 2.32 per cent, at 4313, while the broader All Ordinaries had added 94.6 points, or 2.27 per cent, to 4264.4.
CMC Markets senior dealer Dominic Vaughan said the local bourse had opened quite firm.
"Most sectors are strong today,'' he said.
"We've got a positive lead out of the US and we've had commodity prices firmer overnight.''
Mr Vaughan said the local market could see some profit-taking over the next few days.
Mining stocks were up as commodity prices rose overnight. At 10.16am AEDT, BHP Billiton was up 5.29 per cent to $30.66. Rio Tinto rose 5.01 per cen to $83.70.
Local energy companies were stronger.
At 10.35am AEDT, Woodside Petroleum had gained $1.03 $45.00 and Santos was up 4.74 per cent to $14.80.
Banks were mixed. ANZ was up 35 cents, or 1.86 per cent, to $19.15, NAB was 38 cents higher at $25.90 and Commonwealth Bank fell 18 cents to $41.62.
Westpac lost 60 cents, or 2.69 per cent, to $21.70 and its imminent partner St George was 10 cents higher to $30.03.
Spot gold was trading in Sydney at $US763.60 an ounce, up $US37.70 on Tuesday's close of $US725.90.
Newcrest Mining was up 9.39 per cent to $22.58, Newmont Mining added 25 cents to $4.25 and Lihir Gold rose 16 cents to $2.23.
In the US, Wall Street staged a powerful rally overnight as Americans voted, with investors hoping that a new president will bring relief from the global financial crisis.
The Dow Jones Industrial Average surged 305.45 points, or 3.28 per cent, to 9625.28 and the tech-heavy Nasdaq added 53.79 points, or 3.12 per cent, to 1780.12.
The Standard & Poor's 500 index gained 39.45 points, or 4.08 per cent to finish at 1005.75.
On the Sydney Futures Exchange, the December share price index futures contract was 111 points higher at 4322 on a volume of 6198 contracts.
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