At 10:30 (AEST), the benchmark S&P/ASX 200 index was up 109.70 points or 2.20 percent at 5,107.80, while the broader All Ordinaries index was up 115.10 points or 2.30 percent at 5,121.30.
"European and U.S. shares lifted further in overnight trading as the world awaits the passage of a US fiscal stimulus bill worth $2 trillion," CMC Markets chief market strategist Michael McCarthy said.
"Despite last minute delays it is expected the rescue package will offset the economic impact of the viral outbreak." he said.
Nearly all local sectors are trading higher, with technology, consumer discretionary, health care, energy and utilities sectors leading the gains. However, heavyweight financials and materials sectors are underperforming.
In the financial space, Australia's big banks were mixed with the Commonwealth Bank down (1.60 percent), ANZ up (0.30 percent), National Australia Bank up (1.08 percent) and Westpac Bank down (0.06 percent).
Mining stocks were also mixed with Rio Tinto up (4.96 percent), BHP down (0.90 percent), goldminer Newcrest down (0.58 percent) and Fortescue Metals up (2.25 percent).
The country's oil and gas producers surged with Oil Search up (5.14 percent), Santos up (3.68 percent). However, Woodside Petroleum was down (0.40 percent).
Australia's largest supermarkets slipped with Coles down (0.96 percent), and Woolworths down (0.60 percent).
Meanwhile telecommunications giant Telstra dropped (0.63 percent), the national carrier Qantas soared (5.20 percent) and biomedical firm CSL rosed (3.23 percent).