At noon on Tuesday, the benchmark S&P/ASX200 index was up 156.8 points, or 2.44 per cent, to 6613.7, while the broader All Ordinaries was ahead 157.4 points, or 2.36 per cent, to 6813.8.
In percentage terms, the ASX200 was on pace for its best session since a 2.59 per cent gain on October 5, 2020.
In terms of points, the index was on track for its best day since a 222.5-point rise on June 16, 2020.
"Bye-bye September...this is how we roll in October!" tweeted ThinkMarkets analyst Carl Capolingua, while adding that the index would need to close above 6595 for credibility.
The gains came after a broad relief rally on Wall Street, where the S&P500 climbed 2.6 per cent, and ahead of the Reserve Bank of Australia's latest rate hike decision, due at 2.30pm AEDT.
Every sector of the ASX was up at least 0.9 per cent, with mining the biggest gainer, rising 3.1 per cent as the US dollar retreated further from last week's peak.
BHP was up 2.9 per cent to $39.715, Rio Tinto had added 2.2 per cent to $95.11 and South32 was up 3.4 per cent to $3.675.
Goldminer Northern Star had risen 5.7 per cent, Newcrest was up by 4.8 per cent and Evolution had added 4.5 per cent.
All the big retail banks were up, led by ANZ's 3.4 per cent climb to $23.55. Westpac had gained 3.2 per cent to $21.265, NAB had added 3.0 per cent to $29.59 and CBA was up 2.6 per cent to $92.96. Macquarie was up 2.8 per cent to $155.65.
In the energy sector, coalminers Whitehaven and New Hope had both hit new all-time highs, rising 2.7 per cent to $9.39 and 3.8 per cent to $6.54, respectively.
Woodside was up 3.3 per cent to $33.12 as OPEC+ mulled production cuts.
Most economists are predicting the RBA will hand down another 50 basis point hike later on Tuesday, although a minority have forecast a 25 basis point one.
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