At 10:30 (AEST), the benchmark ASX 200 index was up 67.60 points or 1.00 percent at 6,857.20, while the broader All Ordinaries index was up 74.50 points or 1.06 percent at 7,117.20.
"The continuing support of central banks is a key factor in elevated asset prices," CMC Markets chief market strategist Michael McCarthy said.
"The Reserve Bank of Australia is very unlikely to move interest rate settings today, but there is heightened speculation that it will extend its bond purchase program."
In the financial space, the big banks surged with Commonwealth Bank up 0.97 percent, National Australia Bank up 1.31 percent, Westpac Bank up 0.62 percent and ANZ up 1.88 percent.
Mining stocks were mostly higher with BHP up 1.20 percent, Rio Tinto up 1.67 percent, and Fortescue Metals up 1.63 percent, however, gold miner Newcrest was down 0.98 percent.
The country's oil and gas producers varied with Oil Search down 1.16 percent, Santos up 0.14 percent and Woodside Petroleum down 0.60 percent.
Australia's largest supermarkets rallied with Coles up 0.84 percent, and Woolworths up 0.27 percent.
Meanwhile telecommunications giant Telstra lifted 0.16 percent, the national carrier Qantas remained unchanged and biomedical firm CSL jumped 0.64 percent.
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