At 10:30 (AEST), the benchmark S&P/ASX 200 index was up 34.20 points or 0.53 percent at 6,518.50, while the broader All Ordinaries index was up 30.10 points or 0.45 percent at 6,717.10.
Vaccine optimism was again driving gains on global equity markets, with Australia's energy companies reaping the biggest benefit locally in early trade.
As a sector, energy was up close to 3.5 percent as it continued to recover from the impact on global travel and activity brought by COVID-19.
Meanwhile the banks also boosted the bourse, up over 1 percent while materials and industrials offered more modest support.
Weighing were tech, communications and utilities which all fell sharply.
In the financial space, the big banks bounced with Commonwealth Bank up (0.91 percent), Westpac Bank up (2.37 percent), ANZ up (2.56 percent) and National Australia Bank up (1.48 percent).
Mining stocks were mostly higher with Rio Tinto up (0.92 percent), Fortescue Metals up (0.96 percent) and BHP up (2.03 percent) however goldminer Newcrest was down (1.94 percent).
The country's oil and gas producers surged with Oil Search up (5.85 percent), Santos up (4.78 percent) and Woodside Petroleum up (3.79 percent).
Australia's largest supermarkets dropped with Coles down (0.84 percent), and Woolworths down (0.57 percent).
Meanwhile telecommunications giant Telstra fell (1.27 percent), the national carrier Qantas lifted (1.93 percent) and biomedical firm CSL edged higher (0.04 percent).
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