The S&P-ASX 200 index has shot to a seven-day high of 4353 points today, up 2.3%, while the All Ordinaries gained 2.2% to 4370.2 points.
On Wall Street, the S&P 500 index surged 3.1% to 1060.27 points higher overnight while the Dow Jones Industrial Average added 2.8% to 10,018.28 points, its first close above the psychological 10,000 mark since June 28.
"Equity markets are bouncing from oversold territory and I think it will continue," Macquarie Private Wealth division director Martin Lakos told Dow Jones Newswires.
"There's no doubt that equities were discounting every possible worst-case outcome. We are now starting to see some of those concerns unwind, in terms of the stress testing of banks in Europe, US earnings and the US economy."
BHP Billiton was trading 2% higher at $A38.20 while Rio Tinto gained 2.3% to $67.35 at 11:55am AEST.
Fortescue Metals Group was also trading higher, up 3.1% to $4.31, while OZ Minerals gained 2.4% to $1.06 and Paladin Energy was up 2% to $3.53.
Spot gold was trading $2.15 higher at $US1204.73 an ounce in late morning trade.
Newcrest Mining was up 2.2% to $34.23, Lihir Gold had gained 1.9% to $4.21 and Kingsgate Consolidated added 2.3% to $9.72.
Commodities on the London Metal Exchange, for the most part, closed higher overnight.
Copper for three-month delivery gained 0.6% to $US6645 per tonne, nickel jumped 1.3% to $19,150/t and zinc gained 0.2% to $1853/t.
