At the market close the benchmark S&P/ASX 200 index was up 65.80 points or 1.09 percent at 6,102.20, while the broader All Ordinaries index was up 66.40 points or 1.06 percent at 6,306.00.
"The driver today seems to be a strong lead from Wall Street and President Trump encouraged Congress to pass a number of standalone fiscal stimulus bills," CommSec market analyst Steven Daghlian said.
Gains were widespread across the local market. Heavyweight financials and materials surged 1.2 percent and 1.5 percent respectively.
Tech and healthcare stocks also helped drive market gains, both surging more than 2.5 percent.
In the financial space, the big banks surged with Commonwealth Bank up 0.80 percent, National Australia Bank up 0.86 percent, Westpac Bank up 1.46 percent and ANZ up 1.26 percent.
Mining stocks were mostly higher with BHP up 2.15 percent, Rio Tinto up 1.97 percent and Fortescue Metals up 1.61 percent. However, gold miner Newcrest was down 0.33 percent.
The country's oil and gas producers fell with Oil Search down 1.05 percent, Santos down 0.40 percent and Woodside Petroleum down 0.49 percent.
Australia's largest supermarkets varied with Coles down 0.51 percent, and Woolworths up 0.40 percent.
Meanwhile telecommunications giant Telstra slumped 1.06 percent, the national carrier Qantas plummeted 1.61 percent and biomedical firm CSL surged 2.43 percent.
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