The S&P/ASX200 rose 42.7 points by midday, up 0.49 per cent to 8,844.7 as the broader All Ordinaries gained 44.9 points, or 0.49 per cent, to 9,109.9.
The move followed a Wall Street rebound on better-than-expected jobs figures, solid earnings results and as US Supreme Court justices raised doubts over the legality of President Donald Trump's tariff policies.
"Stocks partially recovered from yesterday's sell-off as investors bought the dip, driving gains in the US and across Europe," Westpac economist Ryan Wells said.
Most sectors were trading higher by lunchtime but energy stocks seesawed after oil prices dipped overnight, while NAB's underwhelming financial scorecard weighed on the financial sector.
NAB shares tumbled 2.4 per cent to $43.46 after posting a 2.9 per cent drop in net profit after tax to $6.8 billion and a 0.2 per cent slip in full-year cash earnings to $7.1 billion.
Macquarie will report its half-year results on Friday.
Westpac was also under pressure, losing 1.8 per cent while ANZ lifted 0.5 per cent and CBA gained 0.9 per cent to $177.98.
Raw materials rebounded 1.2 per cent, led by strong gains in iron ore giants BHP, Fortescue and Rio Tinto, which rallied between 1.5 and two per cent despite ore prices easing below $US104 a tonne.
Gold stocks also bounced as the precious metal edged upward to $US3,975 ($A6,111) an ounce, boosting names like Evolution, Northern Star and Newmont two per cent or more each in early trade.
Rare earths and lithium miners remained under pressure, with Lynas and Iluka edging lower while Pilbara Minerals traded flat and Liontown dipped 0.5 per cent.
Australia's tech sector's bounced a modest 0.2 per cent, with mixed performances across the sector.
The tentative return to risk-on sentiment buoyed cryptocurrency Bitcoin, which rose roughly four per cent from recent lows to $US103,190 ($A158,765).
Real estate stocks rebounded strongly after hitting five-month lows on Wednesday, with Vicinity Centres ahead of the pack, up 4.1 per cent, to $2.56 after releasing its quarterly update.
In company news, Seven West Media received a first strike against executive pay, with more than a third of shareholders rejecting the group's remuneration report.
James Hardie has gone into a trading halt pending a further announcement after its shares tumbled roughly nine per cent in early trade.
The Australian dollar is buying 65.04 US cents, down from 65.28 US cents on Wednesday at 5pm.
22°C