On the Sydney Futures Exchange, the March share price index futures contract was 50 points higher at 3297 on a volume of 9297 contracts.
The big miners were higher, with market leader BHP Billiton up 72 cents, or 2.37 per cent, at $31.07, and rival Rio Tinto $1.03 higher, or by 2.05 per cent, to $51.20.
The banking sector was stronger, too.
National Australia Bank was up 45 cents at $17.18, Commonwealth Bank added 58 cents to $29.25, ANZ increased 32 cents to $13.18 and Westpac added 20 cents to $16.80.
In the US overnight, Wall Street extended its rally into a third day as investors took in stride a cut in General Electric Co's credit rating.
Standard & Poor's lowered GE's top rating one notch because of problems at the conglomerate's lending arm, but indicated it was not eying another downgrade.
Many investors had expected deeper cuts for GE, the oldest member of the Dow Jones industrials. GE stock jumped more than ten per cent, helping drive the Dow back above the 7000 mark.
The Dow Jones industrial average rose 239.66, or 3.46 per cent, to 7170.06.
The S&P 500 index had added 29.38, or 4.07 per cent, to 750.74, while the Nasdaq composite index had gained 54.46, or 3.97 per cent, to 1,426.10.
"The third consecutive day of an increase on Wall Street has certainly helped," CMC Markets analyst David Taylor said.
"A little bit of confidence has returned to the market with the miners, finance and energy stocks higher."
In news today, Telstra is farewelling another US executive, with group managing director of marketing Bill Stewart to leave at the end of March. Its stock was up three cents at $3.18.
New Zealand noteholders in Babcock & Brown voted against a special resolution to restructure the terms of the debt represented by their notes.
Babcock and Brown shares, which are suspended from trading, last traded at 32.5 cents.
Rupert Murdoch, the billionaire chief executive of News Corp, shuffled leadership of the company's Fox operations in Los Angeles, as the media company prepares for the departure of President Peter Chernin.
News Corp added 37 cents, or 3.87 per cent, to $9.94, its non-voting script was 27 cents or 3.15 higher at $8.83.
Energy stocks mostly were stronger, with Santos up 18 cents at $16.18, Woodside was $1.12 or 3.11 per cent higher at $37.10, and Oil Search gained eleven cents to $5.16.
Large banks take beating on Wall Street
Bernard Madoff says he is ashamed
Market higher at noon
