The sharemarket closed at its highest level in more than four years, with gains across the board.
The benchmark S&P/ASX 200 index had risen 18.5 points, or 0.37 per cent, to 5081.9 points, while the broader All Ordinaries index had added 18.1 points, or 0.36 per cent, to 5101 points.
The S&P/ASX 200 closed at its highest level since September 2008.
On the ASX 24, the March share price index futures contract was up 18 points at 5060 points, with 21,613 contracts traded, according to preliminary calculations.
RBS Morgans senior private client adviser Bill Chatterton said there had been gains across all the sectors, with the materials sector performing particularly well.
"We're right in the middle of reporting season and so far we've had some disappointments in the odd one, but on balance its been reasonably good," he said.
Europe's main sharemarkets mostly fell yesterday after a weekend meeting of the Group of 20 leading economies ended with Japan being spared an accusation of unfairly devaluing its currency.
Wall Street was closed for the President's Day public holiday.
Locally, BHP Billiton rose 33c to $39 and Fortescue rose 5c to $5.18 but Rio Tinto fell 38c to $70.51.
Beverage company Coca-Cola Amatil's announced its annual profit had fallen by 22 per cent as it deals with weak consumer spending and the strong Australian dollar but its shares closed 27c higher at $13.90.
Engineering firm Monadelphous said it continued to benefit from massive investments in resource projects, posting a record $79.1 million result in the first half of 2012-13.
However, Monadelphous shares fell $1.68 to $26.17.
Steel and mining group Arrium fell further into the red as the strong dollar and weak construction markets cause a massive writedown on its assets, which caused its shares to fall 2.5c to $1.235.
Ports and rail operator Asciano has increased its first-half profit by 74 per cent and forecast more earnings growth in the second half of the financial year, leading its shares to rise 10c to $5.35.
In economics news the Reserve Bank of Australia released the minutes of its February meeting where it kept the cash rate at 3 per cent.
The minutes indicated the RBA was waiting to see how recent interest rate cuts would flow through the economy before deciding if it needs to cut the cash rate further in 2013.
Preliminary national turnover was 1.744 billion securities worth $4.904 billion, with 460 stocks up, 546 down and 361 unchanged.
