At 10:30 (AEST), the benchmark ASX 200 index was up 18.40 points or 0.27 percent at 6,770.90, while the broader All Ordinaries index was up 18.70 points or 0.27 percent at 7,013.70.
U.S. share markets finished higher on Monday as global interest rate fears eased.
"Steady Chinese interest rates and slightly softer U.S. data eased global interest rate fears in overnight trading," CMC Markets chief market strategist Michael McCarthy said.
"Bonds rallied, and share markets were led higher by technology stocks as investors turned to higher growth exposures."
On the local bourse, most sectors were trading higher, with materials, healthcare and utilities outperforming.
In the financial space, the big banks slipped with Commonwealth Bank down (0.06 percent), National Australia Bank down (0.31 percent), Westpac Bank down (0.49 percent) and ANZ down (0.46 percent).
Mining stocks were mixed with BHP up (0.90 percent), Rio Tinto up (0.56 percent), Fortescue Metals down (0.37 percent) and gold miner Newcrest down (0.32 percent).
The country's oil and gas producers sank with Oil Search down (1.15 percent), Santos down (0.62 percent) and Woodside Petroleum down (0.20 percent).
Australia's largest supermarkets rallied with Coles up (1.04 percent) and Woolworths up (0.63 percent).
Meanwhile, telecommunications giant Telstra surged (1.39 percent), the national carrier Qantas slumped (1.69 percent) and biomedical firm CSL improved (0.31 percent).
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