At 10:30 (AEST), the benchmark S&P/ASX 200 index was up 283.2 points or 5.98 percent at 5,018.9, while the broader All Ordinaries index was up 281.2 points or 5.92 percent at 5,034.5.
"Major U.S. indices soared to their largest one-day gains since 1933 as investors anticipated the successful passing a US$2 trillion fiscal stimulus package by Congress," CMC Markets chief market strategist Michael McCarthy said.
"The package is expecting to pass both US houses during today's Asia Pacific trading session," he said.
Most sectors are trading higher, with financials, materials and industrials leading the gains.
In the financial space, Australia's big banks jumped with the Commonwealth Bank up (5.06 percent), ANZ up (6.94 percent), National Australia Bank up (5.56 percent) and Westpac Bank up (5.31 percent).
Mining stocks surged with Rio Tinto up (5.14 percent), BHP up (6.94 percent), goldminer Newcrest up (5.10 percent) and Fortescue Metals up (4.52 percent).
The country's oil and gas producers increased with Oil Search up (2.94 percent), Santos up (4.83 percent) and Woodside Petroleum up (4.65 percent).
Australia's largest supermarkets slipped with Coles down (0.62 percent), and Woolworths down (2.46 percent).
Meanwhile telecommunications giant Telstra dropped (1.42 percent), the national carrier Qantas soared (22.01 percent) and biomedical firm CSL lifted (0.86 percent).
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