The S&P/ASX200 jumped 47.2 points, or 0.56 per cent by lunchtime on Tuesday, to 8,462.5, as the broader All Ordinaries rose 50.9 points, or 0.59 per cent, to 8,688.4.
"The US has extended its pause on some Chinese tariffs to August 31, so that's a boon for risk-on sentiment in the Asia-Pacific region," Moomoo market strategist Jessica Amir said.
Hong Kong's Hang Seng index has surged 1.1 per cent in early trading, while Japan's Nikkei is up 0.4 per cent.
"Other investors are more short-term focused, seeing the negative impact of tariffs, curbing consumption and increasing unemployment," Ms Amir said.
Nine of 11 sectors were clearly in the green, led by a one per cent rebound in materials stocks after a lacklustre start to the week for big miners.
Large cap miners BHP and Fortescue recovered 0.6 per cent and 1.3 per cent after selling off on Monday, but gold miners were again the clear winners after the precious metal rallied more than two per cent overnight.
Northern Star, Newmont and Evolution Mining were all up more than three per cent each by midday, as gold futures traded at $US3,395 ($A5,237) an ounce.
Rising US-China trade tensions and a lack of progress in Russia-Ukraine peace talks are again boosting the safe haven's appeal.
Energy stocks were up 0.7 per cent with help from a more than six per cent lift in natural gas prices overnight, while oil traded within a tight range.
Brent crude futures are trading at $US64.87 a barrel, while its West Texas equivalent is fetching $US63.36 a barrel.
Banks helped push the bourse higher, with financials up 0.8 per cent by lunchtime.
ANZ and Westpac were leading the big four banks, both up more than 1.1 per cent each after underperforming on Monday.
The gravity-defying Commonwealth Bank has hit a new intraday high of $177.82, before easing to $177.55, up 0.6 per cent.
Consumer discretionary and health care stocks were the only sectors in the red, both down 0.1 per cent by lunchtime.
Shares in international student agent service IDP Education plummeted by 43 per cent, after it flagged roughyl 30 per cent drops in student placements due to restrictive policies in the US, Australia and Canada.
The Australian dollar is slightly higher against the greenback, fetching 64.82 US cents, up from 64.67 US cents on Monday at 5pm.
The US dollar strength index is struggling to rebound from three-year lows, as concerns continue to swell about economic growth in the world's largest economy and President Donald Trump's "Big, Beautiful Bill," which would add trillions to already spiralling US debt.
