The Australian share market was almost one per cent higher in early afternoon trading, driven by gains on Wall Street and European markets.
At 1305 AEST on Monday, the benchmark S&P/ASX200 index was up 35.7 points, or 0.85 per cent, at 4,245.5 points, while the broader All Ordinaries index was up 31.8 points, or 0.75 per cent, at 4,266.2 points.
On the ASX 24, the September share price index futures contract was 34 points higher at 4,207, with 20,790 contracts traded.
City Index chief market analyst Peter Esho said Australian shares were experiencing an upwards trend due to the strength of overseas markets.
"It's across the board, with the financial stocks continuing to provide support," Mr Esho said.
Resources stocks posted modest gains.
US stocks surged higher for a second straight day on Friday, pushing the Dow above 13,000 for the first time since May, on hopes for US and European stimulus to jump-start frail economies.
The Dow Jones Industrial Average closed on Friday at 13,075.66, up a hefty 187.73 points or 1.46 per cent.
European stock markets posted solid gains as Germany and France backed a staunch defence of the euro by European Central Bank chief Mario Draghi, and the US reported better than expected growth in the second quarter.
Among the major financial stocks domestically, ANZ was up 30 cents at $23.28, National Australia Bank gained 34 cents to $24.59, Westpac was up 31 cents at $23.31 and Commonwealth Bank was $1.15 higher at $57.33.
Among the resources companies, BHP Billiton was up 28 cents at $31.68 and Rio Tinto was 50 cents higher at $52.50.
In other equities news, Telstra chief executive David Thodey is scheduled to address an American Chamber of Commerce in Australia lunch in Sydney.
National turnover at 1320 AEST was 783 million securities worth $1.9 billion, with 456 stocks up, 323 down and 312 unchanged.
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