On the local market, the benchmark S&P-ASX 200 index gained 29.5 points to close at 4981.1, while the broader All Ordinaries jumped 43.1 points to 5039.
Base metals rebounded across the board on the London Metal Exchange overnight with three-month copper up 3.9% to $US7430 per tonne, zinc up 2% to $1650/t and nickel up 7.7% to $19,500/t, however lead fell 3.5% to $1680/t.
"[Resources have] just been slaughtered and they're having a bounce," Southern Cross Equities Charlie Aitken told Dow Jones newswires. Another trader told the newswire today has been a "turning point" for a lot of resource stocks.
"There was panic selling in the last few days and now everyone is surging back on board," the trader said.
Major miner BHP Billiton closed the session $A1.94 (5.3%) higher at $38.70, while rival and takeover target Rio Tinto added $6.35 (5.7%) to close at $117.95.
Iron ore miner Fortescue Metals Group added 54c (7.5%) to $7.71, while Oz Minerals jumped 14c (8.5%) to $1.79.
Spot gold was trading up $US4.55 to $830.45 an ounce at 4.07pm EST.
Gold’s rebound was mainly due to a recovery in oil prices and on comments from Merrill Lynch chief investment strategist Richard Bernstein that "the credit crisis is broad, deep and global, and it is not likely to end soon" – news that will likely support safe haven buying.
The bulk of gold plays on the Final Call watchlist gained ground today with Newcrest adding A15c to $25.05, Newmont up 20c to $5.03, Lihir Gold up 11c to $2.33 and Sino Gold up 32c to $4.57.
Meantime, shares in Felix Resources surged to an intraday high of $18.64, up 22%, on speculation that Vale may make a takeover bid.
In response to a query from the ASX over the surge in its share price, the Australian coal miner said it had nothing new to add to last month’s statement that the company had received a number of approaches.
"At this time, the interest shown by parties remains preliminary, incomplete, non-binding and conditional," Felix said in a statement.
Felix closed the session at $18, up 18.3%.
