The Australian share market continued its second consecutive day of recovery from last week’s big drops, driven by overnight offshore leads.
At the close on Tuesday, the benchmark S&P/ASX200 index was up 47.4 points, or 1.2 per cent, at 4,121.
The broader All Ordinaries index was up 49.1 points, or 1.19 per cent, at 4,173.5.
On the ASX 24, the June share price index futures contract was 52 points higher at 4,124 with 36,605 contracts traded.
The ASX200 has gained 1.8 per cent in the past two trading days following a 5.6 per cent plunge over last week.
IG Markets market strategist Stan Shamu said Australian investors were positioning themselves ahead of possible positive news following a European Union summit on Wednesday.
Official sentiment in the euro zone is moving away from complete austerity measures and towards pro-growth policies, while Chinese Premier Wen Jiabao was reported as pledging to promote growth, Mr Shamu said.
“I think one reason we are seeing this buying is that everyone wants to position themselves ahead of that summit,” he said.
“If they come up with comments that might be bullish for markets, no one wants to miss.”
Every sector was up on Tuesday, with the exception of info tech stocks.
Cyclical stocks, including mining and energy shares, were among the best performers, with oil prices having risen.
Market heavyweight BHP Billiton rose 22 cents to $32.32, while Rio Tinto gained 94 cents, or 1.68 per cent, to $56.89.
Oil Search led the oil sector higher, adding 15 cents, or 2.23 per cent, to $6.87. Rival Woodside Petroleum increased 32 cents to $31.31 and Santos climbed 31 cents to $12.31.
Leighton Holdings surged 65 cents, or 3.76 per cent, to $17.94 after posting a quarterly net loss but reassured investors it would report a full year profit of between $400 million and $450 million.
The major banks traded in positive territory, led by National Australia Bank which gained 31 cents to $23.91.
Bank of Queensland surged 19 cents, or 3.02 per cent, to $6.49.
Gold major Newcrest Mining fell 26 cents, or 1.02 per cent, to $25.24 following falls in the price of gold overnight.
The spot price of gold in Sydney finished at $US1,587.78 per fine ounce, down $US6.75 from Monday’s local close of $US1,594.53.
Retailer David Jones lost three cents to $2.20.
National turnover was 1.67 million securities worth $4.75 billion, with 702 stocks up, 301 down and 330 unchanged.