SHARES were firmer at noon, with strong gains among financial and resources companies leading the broader market higher.
At 12.03pm (AEST), the benchmark S&P/ASX200 index was up 64.3 points, or 1.47 per cent, at 4444.6 points, while the broader All Ordinaries index had risen 62 points, or 1.41 per cent, to 4462 points.
On the Sydney Futures Exchange, the September share price index contract was 70 points higher at 4429 points, with 15,111 contracts traded.
There were about five shares up for every two that were down in early trade, with 18 among the S&P/ASX20 in positive territory at 12.08pm.
Bank Suncorp-Metway was the best performer, up 2.68 per cent, or 22c, at $8.44.
Next was investment bank Macquarie Group, which was had risen 2.23 per cent, or 91c, to $39.91.
And Westpac was not far behind, having climbed 2.2 per cent, or 49c, to $22.75.
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Stock in red figures on the S&P/ASX20 were brewer Foster's Group, down 2c at $5.84 and CSR, off 5c at $33.75.
The local market received a positive lead from the overnight action, with the main indices on Wall Street gaining more than one per cent and commodities prices ending firmer.
Shaw Stockbroking senior dealer Jamie Spiteri said the positive lead from offshore markets had helped resources stocks claw back some of the ground lost yesterday.
Meanwhile, the banks had continued their recent run higher, he said.
"We've had basically almost a week of consistent improvement across the banking sector," Mr Spiteri said.
"We're seeing a bit of rebalancing, or repricing, basically taking place across the market."
At 12.18pm, BHP was up 64c, or 1.7 per cent, at $38.26, while Rio Tinto had climbed 87c, or 1.31 per cent, to $67.42.
Fortescue Metals was up 14c, or 3.29 per cent, at $4.40.
Rio said it had secured $US200 million ($226.4 million) funding to begin expanding its iron ore operations in Western Australia's Pilbara region.
The major miners were heavily sold off yesterday, after concerns were raised about the demand for iron ore among Chinese steel makers.
Despite the upbeat trading mood so far today, Mr Spiteri said trading volumes and turnover had picked up only modestly.
"We're still seeing general activity and volumes on the lower to modest side," Mr Spiteri said.
"There are a range of different points of caution out there still, despite the fact that the market has improved off its lows."
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