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The Australian share market jumped higher for the second day after the US and European governments moved to guarantee banking systems, lifting investor confidence.
US stocks gained overnight, with the three major indices each rising over eleven per cent.
The benchmark S&P/ASX200 was up 243 points, or 5.81 per cent, at 4,423.7, just after opening; while the broader All Ordinaries gained 242.2 points, or 5.85 per cent, to 4384.1.
On the Sydney Futures Exchange, the December share price index futures contract surged 259 points to 4453, on a volume of 9,689 contracts.
The official in charge of implementing the US's $700 billion rescue package, Neel Kashkari, said overnight that the United States government planned to take stakes in a "broad array" of banks.
European governments overcame their differences to put euro 1.7 trillion (A$3.45 trillion) on the line on Monday in guarantees and other emergency measures to save their banking systems, in their most unified response yet to the global financial crisis.
Banking stocks gained. National Australia Bank jumped $1.56, or seven per cent, to $23.96, Commonwealth Bank rose $1.85, or 4.4 per cent, to $44.05 and ANZ Banking Group increased $1.58, or 9.1 per cent, to $18.88.
Westpac climbed $1.23, or 5.6 per cent, to $23.23 and its takeover target St George Bank added $1.56, or 5.6 per cent, to $29.22.
Investment firm Macquarie Group surged $4.92, or 15.5 per cent, to $36.67.
On Wall Street overnight, the Dow Jones industrial average rose 936.42, or 11.08 per cent, to settle at 9,387.61.
The Standard & Poor's 500 index advanced 104.13, or 11.58 per cent, to 1,003.35, and the Nasdaq composite index rose 194.74, or 11.81 per cent, to 1,844.25.
- AAP
