At 10:30 (AEST), the benchmark S&P/ASX 200 index was up 10.70 points or 0.17 percent at 6,195.30, while the broader All Ordinaries index was up 11.80 points or 0.18 percent at 6,408.60.
Despite a slow start the market quickly consolidated gains thanks to a surge by energy producers, which were up close to 1.5 percent following a commodity price rally.
"Global oil prices rose around 1.5 percent on Tuesday on hopes that the U.S. was nearing a stimulus deal, which could boost crude demand," Commsec market analyst Ryan Felsman said.
Meanwhile financials also provided strong support, up around 0.5 percent, while materials bounced.
The biggest weight was consumer staples which plummeted, weighed down by a slump in the major supermarkets.
In the financial space, the big banks rallied with Commonwealth Bank up (0.61 percent), Westpac Bank up (0.32 percent), National Australia Bank up (0.89 percent) and ANZ up (1.14 percent).
Mining stocks lifted with BHP up (0.61 percent), Rio Tinto up (0.75 percent), Fortescue Metals up (0.12 percent) and goldminer Newcrest up (0.06 percent).
The country's oil and gas producers soared with Oil Search up (2.11 percent), Santos up (1.77 percent) and Woodside Petroleum up (1.75 percent).
Australia's largest supermarkets slumped with Coles down (1.29 percent), and Woolworths down (1.23 percent).
Meanwhile telecommunications giant Telstra bounced (0.18 percent), the national carrier Qantas took off (1.61 percent) and biomedical firm CSL dropped (0.60 percent).
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