The benchmark S&P/ASX200 index jumped 109.5 points, or 1.66 per cent, to 6,688.2, while the broader All Ordinaries was up 114.8 points, or 1.7 per cent, at 6,877.2.
Sentiment appeared to have improved since last week after Wall Street rebounded strongly on Friday and oil prices eased, tempering fears of aggressive rate hikes by central banks to tackle a period of prolonged inflation.
Every single sector was in positive territory by noon, with heavyweight stocks showing the way.
Each of the Big Four banks rose more than two per cent. Suncorp also climbed 3.5 per cent to $11.22 after the country's second-largest insurer said it is reviewing options for its banking business.
Mining shares also lifted as iron ore futures rose on expectation of a recovery in demand after Chinese President Xi Jinping pledged to take more effective measures to achieve the country's economic goals.
BHP Group and Fortescue Metals were both up more than 4.0 per cent each, while rival Rio Tinto added 3.0 per cent.
However, gold producers took a heavy hit after Evolution Mining cut its output for the full year and warned of higher costs. The stock slumped more than 20 per cent to $2.69 and also resulted in peers such as Newcrest, Regis Resources and Northern Star dropping 3-8 per cent.
Energy stocks were well placed despite crude oil prices edging slightly lower. Local producers Woodside and Santos were both up more than two per cent.
Technology stocks tracked gains on Wall Street, with ASX-listed shares of Block climbing 5.1 per cent to $103.80, while software firm Xero rose 1.1 per cent to $83.
Among specific stocks, shares in Link Administration were up 3.2 per cent to $3.81 despite Canadian cloud-based software company Dye & Durham Ltd lowering its takeover proposal.
Metcash jumped 3.5 per cent to $4.29 after the IGA Supermarkets owner and distributor said net profit for the 12 months to April 30 rose 2.7 per cent and sales revenue for the full year rose 6.4 per cent to $17.4 billion.
Meanwhile, the Australian dollar was buying 69.21 US cents, from 69.03 US cents at Friday's close.
