THE share market opened higher after an auction of Portuguese government debt eased concerns about the state of Europe's financial system.
At 10.15am (AEST) the benchmark S&P/ASX200 index was up 30.2 points, or 0.67 per cent, at 4567.4, while the broader All Ordinaries index had risen 28.3 points, or 0.62 per cent, at 4606.6.
Around five companies were higher than for every stock on the slide on the S&P/ASX50.
The major banks started the local session firmer.
ANZ was up 18 cents at $23.67, Commonwealth Bank was 51 cents higher at $52.29 and Westpac was up 12 cents at $22.82.
Shares in National Australia Bank were up 42 cents, or 1.75 per cent, at $24.37, after the Australian Competition and Consumer Commission (ACCC) said on Thursday it had rejected undertakings proposed by NAB and AXA Asia Pacific Holdings.
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AXA's shares had slumped 53 cents, or 9.74 per cent, at $4.91.
In the US overnight, US equities resumed their rally on Wednesday after a successful auction of Portuguese government debt eased worries about Europe's financial system.
Major indexes eased from their highs in the afternoon after the US Federal Reserve said more regions of the nation had experienced slower growth late in the summer.
The Federal Reserve's "beige book" report on regional economic activity showed five of the 12 regions tracked by the US central bank showed mixed or slowing activity, compared with just two during the most recent report in July.
The Dow Jones Industrial Average closed up 46.32 points, or 0.45 per cent, at 10,387.01 points.
The broader S&P 500 index closed up 7.03 points, or 0.64 per cent, at 1098.87 points, while the Nasdaq composite closed up 19.98 points, or 0.90 per cent, at 2228.87 points.
CMC market analyst, David Taylor, said the local market had rallied on the back of the positive lead from Wall Street.
"It is clear US investors reacted positively to Obama's tax cuts and infrastructure spending investment plans.
"They did not worry too much with the Beige Book's assessment of the US economy.
"This is a bit of a relief rally after the market malaise of the last few days."
The fall in AXA's share price and the rise in National Australia Bank's value was not surprising following the decision by the ACCC, Mr Taylor said.
"The market has shown time and time again that investors weren't that happy with NAB's decision to take over AXA," he said.
Mr Taylor said the market was also looking towards the release of official labour force data at 1130 AEST by the Australian Bureau of Statistics.
A median of 11 economists surveyed by AAP forecast total employment to have risen by 30,000 in August, with the jobless rate falling 0.1 percentage points to 5.2 per cent.
The major miners were higher. BHP Billiton was up 30 cents, or 0.79 per cent, at $38.21, while Rio Tinto was up 80 cents, or 1.09 per cent, at $74.23 by 10.41am (AEST).
Shares in Virgin Blue Holdings (VBA) were down 2.5 cents or 5.62 per cent at 42 cents after a proposed alliance with Delta Air Lines on trans-Pacific routes hit turbulence when US regulators rejected the tie-up.
Qantas was up three cents at $2.56.
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