Stocks were further bolstered by China’s decision to cut reserve ratios by 50 basis points, the first cut since 2008.

“The coordinated dollar funding by six central banks helps to ease concerns about a market collapse,” SMBC Nikko Securities chief strategist Ryota Sakagami told Bloomberg from Tokyo.

“The reduction of reserve requirements in China will lead to an increase in money supply and that’ll push up the stock market in China.

“It also enhances the expectation that China will turn its policy stance toward monetary easing from now on.”

The All Ordinaries finished 2.5% or 103.3 points higher at 4288 points, while the S&P/ASX 200 closed 2.6% or 1108.8 points higher at 4228.6 points after remaining in positive territory for the whole session.

Resources was the top performing sector with basic materials closing 4% higher, led by BHP Billiton which jumped 4.1% or $A1.43 to $36.35.

Rio Tinto closed 4.7% or $2.97 higher at $65.92, while Fortescue Metals Group soared 5.7% or 26c to $4.80.

Nearly all the top stocks were winning, with the exception of Evolution Mining, which after a large gain yesterday fell 1.8% or 3.5c to $1.835.

Fellow gold producer Resolute Mining also droppped 0.5% or 1c to $1.95.

Allied Gold jumped 15.4% or 40c to $3.

Elsewhere in the region, Hong Kong’s Hang Seng soared 5.8% while the Shanghai Composite rose 3.2%.

US futures were mixed but flat, ahead of the latest jobless data to be released tonight, while UK futures were trading higher.