The Australian share market lifted in early trade on Thursday despite expectations of further losses as the Reserve Bank of Australia (RBA) is set to announce new monetary policy package later today.
At 10:30 (AEST), the benchmark S&P/ASX 200 index was up 98.40 points or 1.99 percent at 5,051.60, while the broader All Ordinaries index was up 86.30 points or 1.73 percent at 5,085.10.
Nine out of ten sectors were trending higher with energy the only exception which dropped over 3 percent. Financials recorded the biggest rise among all sectors at 3.09 percent, followed by consumer staples at 2.77 percent and health care at 2.50 percent.
The morning rise of Australian share market was in sharp contrast of the dark mood of overseas markets overnight.
"Global markets entered a new, grimmer phase of the current meltdown as all asset classes came under heavy selling pressure," CMC Markets chief market strategist Michael McCarthy said.
"Shares and industrial commodities fell on growth concerns, but bonds, gold and the Japanese yen also dropped as markets entered 'sell everything' mode."
In the financial space, Australia's big banks lifted with the Commonwealth Bank up (6.08 percent), ANZ up (4.03 percent), National Australia Bank up (3.19 percent) and Westpac Bank up (4.15 percent).
Mining stocks were mixed with Rio Tinto up (5.12 percent), BHP up (3.57 percent), and Fortescue Metals up (6.86 percent), however goldminer Newcrest was down (8.36 percent)
The country's oil and gas producers plummeted with Oil Search down (14.96 percent), Santos down (5.11 percent), Woodside Petroleum down (3.48 percent).
Australia's largest supermarkets lifted with Coles up (3.95 percent), and Woolworths up (2.78 percent).
Meanwhile telecommunications giant Telstra was up (1.57 percent), the national carrier Qantas dropped (4.55 percent) and biomedical firm CSL gained (2.75 percent).
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