The share market has closed higher after five-consecutive sessions of heavy losses.
Almost all sectors, apart from the health sector, are higher, CommSec market analyst Steven Daghlian said.
“The market has had a tough run, falling about 3.1 per cent last week; the worst week since June last year,” he said.
“We still have quite a bit of ground to make up but it’s been a positive day with almost all sectors up.
“We’ll see how we go after the federal budget, but if there’s no big surprises, it’s unlikely to have an impact.”
Treasurer Joe Hockey will deliver his second budget at 1930 AEST on Tuesday.
Last year there was a huge fall in consumer sentiment following negative commentary from the federal government, however this year the budget talk has been fairly positive particularly Mr Hockey’s comment that the budget deficit will be lower than expected.
The National Australia Bank returned to the market on Tuesday after being in a trading halt since Thursday while it completed the first stage of its $5.5 billion capital raising.
NAB shares were down 16.37 cents at $34.54.
Among the other major banks, the Commonwealth rose 71 cents to $82.88, while ANZ gained 49 cents to $32.41 and Westpac advanced 36 cents to $34.06.
Shares in Qantas have jumped 7.23 per cent, or 24 cents to $3.56 after the airline flagged $2 billion in benefits from improvements to its business.
Building products maker CSR has reported a 43 per cent rise in its underlying full year net profit which pushed its shares 29 cents, 7.73 per cent, higher to $4.04.
Orica shares gained 70 cents, or 3.47 per cent to $20.89, after the explosives maker said its transformation program is on track, which is boosting earnings and reducing net debt by 20 per cent.
Mining giant BHP Billiton added 71 cents to $32.53, Rio Tinto was 63 cents higher to $59.25 while iron ore miner Fortescue Metals was flat at $2.57.
Oil and gas giant Woodside was up one cent at $34.51 and Santos rose seven cents to $8.66.
KEY FACTS
* At 1615 AEST on Tuesday, the benchmark S&P/ASX200 index was up 49.5 points, or 0.88 per cent, at 5,674.7.
* The broader All Ordinaries index was up 45.5 points, or 0.81 per cent, at 5,673.1.
* The June share price index futures contract was 93 points higher at 5,667 with 30,296 contracts traded.
* National turnover was 1.8 billion securities worth $5.8 billion.
