The Australian share market closed higher for a second day, boosted by gains on Wall Street and higher commodity prices.
The benchmark S&P/ASX200 index was up 37 points, or 1%, at 3779.7, and the broader All Ordinaries index gained 39 points, or 1.1%, to 3728.2.
The gains were spread across all sectors, with the materials sub-index rising 2.5%, energy up 1.6% and financials gaining 0.9%.
"The market is showing some renewed strength,'' said Chris Chong, industrial analyst at DJ Carmichael.
The big resource companies BHP Billiton and Rio Tinto benefited from a lot of the buying today, he said, while banks gave up some of their earlier gains.
"It's been another good day," he said. "We're following on the back of strength from the US despite bad economic news there.''
Mr Chong said nothing fundamentally had changed in the global outlook in recent days but the market was most likely being driven by sentiment, especially in the lead-up to the inauguration of US president-elect Barack Obama on January 20.
Today's share market rise "may just be an Obama rally,'' said Mr Chong. There is a lot of conjecture the momentum in the market will be sustained afterwards, he said.
"Our feeling is it won't be,'' Mr Chong said, noting China GDP's figures are due out before the end of the month. A fresh look at the growth figures for the emerging market may contain unpleasant surprises for investors.
More to come. The following is from an earlier report.
CMC Markets head of trading James Foulsham said most of the strength in the local market was coming from the resources sector.
"The resources have been the real standout today,'' he said.
"BHP Billiton and Rio Tinto are both really strong.
"That is having a bit of a knock on effect - some of the mid-cap miners are doing really well also.''
BHP Billiton, the country's largest company, rose $1.30, or 4.1%, to $33.00 while Rio Tinto increased $3.64, or 8.38%, to $47.06.
Local banking heavyweights were in positive territory.
ANZ Banking Group added 26 cents, or 1.69%, to $15.66, National Australia Bank firmed 33 cents, or 1.59%, to $21.07, Westpac advanced one cent to $17.04, and Commonwealth Bank also put on one cent to $29.48.
US stocks rose modestly on Tuesday, lifted by gains overseas and as sentiment was buoyed by hopes that emergency government measures will pull the global economy out of recession.
The Dow Jones added 62.21 points, or 0.69%, to 9,015.10.
Making news, Santos has signed a $US585 million ($A808.79 million) contract with CITIC Pacific Mining to supply gas to the Sino Iron project in Western Australia. Santos shares rose 31 cents, or 2.05%, to $15.45 at 1214 AEDT.
Woodside Petroleum gained $1.13, or 2.93%, to $39.74 and Oil Search rose 12 cents, or 2.61%, to $4.72.
Light, sweet crude oil for February delivery fell 23 cents to $US48.58 a barrel in trading on the New York Mercantile Exchange on Tuesday.
The price of gold in Sydney was $US856.90 per fine ounce, up $US6.60 on Tuesday's close of $US850.30.
Among gold stocks, Lihir added four cents, or 1.52%, to $2.68, Newmont lost one cent to $5.47, and Newcrest dropped 75 cents, or 2.37%, to $30.85.
Among the major retailers, Woolworths dropped 10 cents to $26.00, Coles owner Wesfarmers added 64 cents to $19.02 and department store David Jones added eight cents to $3.13.
Media stocks were mostly stronger. Fairfax Media was up 4.5 cents, or by 2.74%, at $1.69, Consolidated Media fell four cents, or 1.95 per cent, to $2.01 and News Corporation added 22 cents, or 1.55 per cent, to $14.41.
News's non-voting scrip firmed 20 cents, or 1.51%, to $13.45.
Telstra Corporation put on eight cents, or 2.14%, to $3.81, while Optus-owner Singapore Telecommunications fell two cents to $2.47.
Qantas was up eight cents at $2.65 and Virgin Blue lifted one cent to 33 cents.
Also in the news, commercial property investor Tishman Speyer says its US office fund has lost ten per cent of its asset value, bringing the fund close to three thresholds under loan covenants.
Tishman was down one cent to 17.5 cents.
The top traded stock by volume was Admiralty Resources, with 60.73 million shares changing hands for $2.52 million.
Its share price fell 0.4 cent, or 10%, to 3.6 cents.
National turnover was 727.2 million shares worth $1.47 billion, with 503 stocks up, 259 down and 218 unchanged.
