Australian shares have gained ground as investors took a cautiously optimistic stance ahead of a keenly awaited update on economic stimulus measures in the US.
The benchmark S&P/ASX200 index was up 47 points, or 0.98 per cent, at 4861.4.
The broader All Ordinaries index was up 47.2 points, or 0.98 per cent, at 4841.8.
The US Federal Reserve chairman Ben Bernanke will speak to media tonight in the US and investors are keen to for an update on the Fed's $US85 billion a month asset purchase program, known as quantitative easing (QE).
The Fed has indicated the bond purchases will continue until the outlook for the US job market improves substantially, but investors want a clearer timetable.
"With the marquee event of the week now imminent, traders have been positioning for a QE-friendly stance from Bernanke," CMC Markets senior trader Tim Waterer said.
But any notice from the Fed that it was to begin pulling back on economic support would be bad for share markets, he said.
"While the ASX200 undoubtedly enjoyed a productive session, if Bernanke does not tell the market what it wants to hear this evening then today's gains could quite easily be reversed."
Almost all sectors of the market rose today, although the banks were slightly weaker.
"Materials stocks were among the highlights on the Australian market today, while the energy sector found confidence from the strengthening oil price," Mr Waterer said.
Rio Tinto rose 83c to $54.38 and BHP Billiton rose 30c to $32.99.
Woodside Petroleum rose 82c to $35.65, Oil Search rose 16c to $8 and Santos rose 15c to $12.80.
Among the banks, Westpac fell 22c to $29.23, Commonwealth Bank fell 13c to $68.36, ANZ fell 3c to $28.35 and National Australia Bank rose 30c to $30.04.
At 4.37pm AEST, the June share price index futures contract was up 55 points at 4875, with 83,730 contracts traded.
National turnover was 1.43 billion securities worth $4.65bn.
