At the market close the benchmark S&P/ASX 200 index was up 234.70 points or 4.42 percent at 5,539.30, while the broader All Ordinaries index was up 219.80 points or 4.09 percent at 5,590.70.
The heavy start followed significant losses for Wall Street which saw it's biggest daily decline since the 1987 "Black Monday" crash.
"Market fears over the spread of the coronavirus outbreak and perceived lack of government responses has seen investors increasingly unsettled," Commsec market analyst James Tao said.
Helping the Aussie market stage the reversal for the day was healthcare, which shot up more than ten percent, and energy which was trending 8 percent higher.
All other sectors were also firmly improved with the exception of utilities which sank by just over half a percent.
The Australian share market is still down more than 20 percent since hitting a record high last month, which constitutes a bear market and is a common marker of recession.
In the financial space, Australia's big banks jumped with the Commonwealth Bank up (5.15 percent), ANZ up (2.96 percent), National Australia Bank up (1.54 percent) and Westpac Bank down (2.14 percent).
Mining stocks rallied with Rio Tinto up (4.76 percent), BHP up (1.48 percent), goldminer Newcrest up (2.88 percent) and Fortescue Metals up (12.97 percent).
The country's oil and gas producers surged with Oil Search up (17.17 percent), Santos up (6.76 percent) and Woodside Petroleum up (9.85 percent).
Australia's largest supermarkets were jumped with Coles up (8.74 percent), and Woolworths up (6.74 percent).
Meanwhile telecommunications giant Telstra bounced (6.41 percent), the national carrier Qantas plummeted (12.64 percent) and biomedical firm CSL surged (11.88 percent).
Latest comments