At 10.19am (AEDT) the benchmark S&P/ASX200 had gained 8.2 points, or 0.24 per cent, at 3474, while the broader All Ordinaries added 7.9 points to 3412.9.
On the Sydney Futures Exchange the June share price index contract was trading up seven points at 3494 on volume of 5062 contracts.
BHP, the biggest company on the exchange, increased 46 cents, or 1.4 per cent, to $32.64 and Rio Tinto gained $1.09 to $47.94.
Telstra, the fourth biggest company, added seven cents, or 2.3 per cent, to $3.10.
The banks were mixed, with Westpac, the ASX's second biggest company, adding four cents to $18.21. Commonwealth Bank, with the third largest market value, fell 28 cents to $33.72. NAB added one cent to $19.13 and ANZ gained 15 cents to $14.70.
Macquarie Equities associate director Lucinda Chan said market sentiment had improved in anticipation of the US policy announcement this week to clean up bad bank debt.
"The market is a little bit more positive than it has been," Ms Chan said.
The lack of economic data this week also meant there would be no bad news, giving investors more confidence that things will be more stable in the short term.
"A lot of people still have a lot of cash, and they're happy to dip their toe in every so often," she said.
Other stocks to do well on the exchange included Wesfarmers, which gained 24 cents, or 1.3 per cent, to $18.27, Sonic Healthcare, which added 38 cents, or 3.5 per cent, to $11.18, and Fortescue Metals Group, which increased six cents, or 2.8 per cent, to $2.24.
Steel makers and building materials makers struggled, with Bluescope Steel falling six cents, or 2.4 per cent, to $2.46, Boral losing eleven cents, or 3.3 per cent, to $3.26, and recycler Sims Metal Management declining 63 cents, or 3.4 per cent, to $17.76.
Wealth manager and life insurer Axa Asia-Pacific fell 16 cents, or 4.5 per cent, to $3.38 and contract miner WorleyParsons slumped 68 cents, or 3.7 per cent, to $17.90.
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