At 10:30 (AEST), the benchmark S&P/ASX 200 index was up 109.10 points or 1.73 percent at 6,407.90, while the broader All Ordinaries index was up 102 points or 1.57 percent at 6,617.70.
Global optimism in relation to a potential COVID-19 vaccine drove steep gains for local oil producers, which collectively surged over 7 percent, as well as for national airline Qantas which was up over 10 percent in early trade, with Sydney airport posting similar gains.
The banks also rallied on the suggestion of better financial prospects as did most major real estate operations, with the potential vaccine meaning a more improved investment environment.
As a whole, the market was well beyond its highest level since March when the virus began to force rolling shutdowns across Australia.
Notable losers in early trade were safe haven gold stocks as well as the information technology sector, with online shopping giant, Afterpay down over 7 percent.
In the financial space, the big banks rallied with Commonwealth Bank up (3 percent), Westpac Bank up (5.24 percent), ANZ up (6.09 percent) and National Australia Bank up (6.93 percent).
Mining stocks were mostly higher with BHP up (1.31 percent), Rio Tinto up (1.35 percent) and Fortescue Metals up (1.08 percent), however goldminer Newcrest was down (5.65 percent).
The country's oil and gas producers surged with Oil Search up (15.14 percent), Santos up (9.58 percent) and Woodside Petroleum up (6.44 percent).
Australia's largest supermarkets slumped with Coles down (3.59 percent), and Woolworths down (1.75 percent).
Meanwhile telecommunications giant Telstra lifted (1.75 percent), the national carrier Qantas surged (10.79 percent) and biomedical firm CSL bounced (0.32 percent).
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