At the market close the benchmark ASX 200 index was up 44.30 points or 0.66 percent at 6,752.50, while the broader All Ordinaries index was up 35.40 points or 0.51 percent at 6,995.00.
All sectors finished higher with the exception of materials, which fell 0.47 percent.
"Miners are weighing on the local market following a 3.5 percent decline in the iron ore price," CommSec market analyst Steven Daghlian said.
"A major steelmaking city in China (Tangshan) recently announced plans to limit production until the end of 2021 in a bid to reduce pollution."
Healthcare added the most points, while energy stocks enjoyed the biggest percentage gains, which were up 2.76 percent thanks to surging oil prices.
In the financial space, the big banks lifted with Commonwealth Bank up (0.44 percent), National Australia Bank up (0.73 percent), Westpac Bank up (0.57 percent) and ANZ up (0.50 percent).
Mining stocks were mostly lower with BHP down (0.89 percent), Rio Tinto down (1.15 percent) and Fortescue Metals down (4.25 percent), however, gold miner Newcrest was up (2.03 percent).
The country's oil and gas producers surged with Oil Search up (3.32 percent), Santos up (2.38 percent) and Woodside Petroleum up (2.53 percent).
Australia's largest supermarkets soared with Coles up (2.07 percent), and Woolworths up (1.98 percent).
Meanwhile telecommunications giant Telstra surged (1.25 percent), the national carrier Qantas slipped (0.37 percent) and biomedical firm CSL soared (2.45 percent).
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