At 12.00pm (AEDT), the benchmark S&P/ASX200 index was up 62 points, or 1.95 per cent, at 3246.5 while the broader All Ordinaries index added 58.2 points, or 1.85 per cent, to 3201.4.
Shaw Stockbroking head dealer Jamie Spiteri said the broader market was stronger on the back of Wall Street's rally driven by news from Citigroup that it was profitable during January and February.
"Our rise here is a little more subdued given that we haven't had some of the damaging falls we've seen in the US,'' Mr Spiteri said.
The financial sector is enjoying a moderate rally, with a correction taking place in the shares of wealth managers and insurers AXA Asia Pacific and AMP.
"Their moves over the last month it's been part of the market which has been damaged in the last two weeks, so we're seeing a bit of a correction upwards in those prices.''
AMP jumped 22 cents or 5.91 per cent to $3.94, and AXA was up 17 cents or 5.96 per cent to $3.02.
The big banks were mostly higher.
ANZ added 3.22 per cent to $13.15.
Commonwealth Bank firmed 2.81 per cent to $28.56, Westpac put on 2.19 per cent to $16.81, while NAB lost 12 cents or 0.74 per cent to $16.16 ahead of its market update.
Resources stocks mostly were higher by 12.13pm.
BHP Billiton jumped 4.41 per cent to $30.57, and rival Rio Tinto added 3 per cent to $49.75.
"Across the resources sector, it's not an explosive move but a better move,'' Mr Spiteri said.
"Gold stocks are weaker on the back of the gold price falling $US25 overnight as a contrary move to the rally in equity markets.''
Lihir Gold fell 18 cents or 5.9 per cent to $2.87, Newcrest Mining was down 45 cents or 1.46 per cent to $30.30, and Newmont Mining lost 34 cents or 5.79 per cent to $5.53.
The spot price of gold in Sydney was $US892.60 per fine ounce, down $US24.75 on yesterday's close of $USS917.35.
The oil sector was mixed.
Santos lost 2.26 per cent to $16.00, and Woodside Petroleum gained 0.4 per cent to $37.24.
Among retailers, Pacific Brands surged 8.82 per cent to 18.5 cents, while Billabong jumped 4.66 per cent to $6.96, and Woolworths added 0.64 per cent to $25.30.
On the Sydney Futures Exchange, the March share price index futures contract was 81 points higher at 3248 on a volume of 16,633 contracts.
More to come.
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