By 4.15pm (AEST), the benchmark S&P/ASX200 index was up 57.4 points, or 1.48 per cent, at 3924.5 points, while the broader All Ordinaries index had gained 58.7 points, or 1.52 per cent, to 3917.5 points.
Macquarie Equities adviser Helen Spencer said US futures were trading higher ahead of the US markets' opening overnight.
"This is helping our market to hold its gains from this morning,'' she said.
"The market is waiting to see how US corporates are faring as we get into the US reporting season.
"That's why volumes have continued to be quite light.''
"Following on from a positive (offshore) lead, commodity prices were trading significantly higher overnight.''
Resources ended the day stronger.
Rio Tinto finished 2 per cent stronger at $50.08 after its maintained its full year production guidance for iron ore.
Global iron ore production jumped by 8 per cent in the June quarter from the same period last year, as market conditions remained tough, Rio said.
Rival BHP Billiton gained 51 cents, or 1.51 per cent, to $34.30, while Alumina jumped 9 cents, or 6.72 per cent, to $1.43.
Bank stocks had a second consecutive day of gains, with better than expected earnings from US investment banking giant Goldman Sachs helping to drive sentiment in the local sector.
Westpac added 31 cents to $19.96, while NAB put on 35 cents to $23.35, Commonwealth Bank gained 52 cents to $38.82 and ANZ Bank firmed 12 cents to $16.50.
By 4.24pm the oil sector made solid gains, with Oil Search advancing 7 cents to $5.28 and Santos up 18 cents at $13.57.
Woodside Petroleum gained 55 cents to $40.89.
Among gold miners dual listed Newmont Mining Corporation lost 8 cents to $4.88, Lihir Gold firmed 2 cents to $2.89 and Newcrest Mining added 22 cents to $30.26.
By 4.29pm the spot price of gold in Sydney was $US926.90, up $US6.30 on yesterday's close of $US920.60.
On the Sydney Futures Exchange, the September share price index contract was up 53 points at 3900 on volume of 24,497 contracts.
Resources, banks push market higher
