The benchmark S&P/ASX200 index on Wednesday gained 60 points, or 0.69 per cent, to 8,737.2, while the broader All Ordinaries rose 59.9 points, or 0.67 per cent, to 9,001.4.
Materials were the strongest of 10 of the 11 ASX sectors in the green, with iron miners moving higher for the third session this week, bolstered by reforms to China's steel industry.
BHP gained 0.8 per cent to $41.85, Rio Tinto climbed 1.0 per cent to $119.47 and Fortescue rose 2.3 per cent to $18.21.
Iluka Resources rose more than three per cent after achieving the full-year production guidance for zircon by June 30.
Major banks rebounded after a shaky start to the week, with the CBA turning its biggest one-day drop since early April into a 0.51 per cent rise, to $173.30.
Westpac moved 1.4 per cent higher to $33.11, ANZ climbed 2.5 per cent to $30.57, while NAB finished almost flat at $37.20.
Overseas, US president Donald Trump announced a trade deal with Japan in a Truth Social post overnight that had a positive impact on local trading.
The deal would result in Japan investing $76 billion into the US, lifting crude oil and Nikkei's 225 index.
While the details of the trade deal were limited and there might be some disagreement from the Japanese side, its impact appeared to be positive, IG market analyst Tony Sycamore said.
"Reaching an agreement there would significantly help to defuse the impact and lessen the importance of the August 1 deadline," he said on Wednesday in relation to a timeframe on reaching tariff deals.
In the energy sector, Woodside had climbed 1.5 per cent to $25.21 after Australia's largest oil and gas producer announced second-quarter production was up two per cent from the first quarter.
Woodside also announced its $16 billion Scarborough project gas project 375km off the coast of Western Australia was 86 per cent complete and on track to deliver its first LNG cargo in the second half of 2026.
Ampol grew 3.3 per cent to $27.77 as the petrol company said its convenience retail business had continued its track record of growing earnings in the first half.
Karoon Energy rose 1.6 per cent to $1.965 with the Brazil-focused oil and gas producer announcing CEO Julian Fowles would depart by mid-2026.
Paladin Energy dropped 1.3 per cent as the uranium miner announced a 33 per cent quarter-on-quarter rise in production at its Langer Heinrich mine in Namibia.
In health care, Telix Pharmaceuticals slid 15.1 per cent to $21.32 as US Securities and Exchange Commission issued the radiopharmaceutical company with a subpoena seeking information about disclosures related to the development of the company's prostate cancer therapies.
The Australian dollar was buying 65.65 US cents, from 65.14 US cents about 5pm on Tuesday.
ON THE ASX:
* The benchmark S&P/ASX200 index on Wednesday gained 60 points, or 0.69 per cent, to 8,737.2
* The broader All Ordinaries rose 59.9 points, or 0.67 per cent, to 9,001.4.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.65 US cents, from 65.14 US cents on Tuesday
* 96.45 Japanese yen, from 96.25 Japanese yen
* 55.94 euro cents, from 55.72 euro cents
* 48.53 British pence, from 48.35 British pence
* 109.1 NZ cents, from 109.42 NZ NZ cents
4°C