Financial sector stocks pulled the market higher in anticipation that the Fed will announce an end to its third round of quantitative easing - a sign the world's largest economy is recovering - in a statement at the end of the two-day Federal Open Market Committee meeting on Wednesday.
The S&P/ASX 200 index closed up 46.75 points or 0.9 percent at 5,459.0, its highest close since Sept. 15. The index has risen in nine of the past 10 sessions.
New Zealand's benchmark NZX 50 index added 0.8 percent or 41.0 points to finish the session at 5333.83.