Australian shares jumped 1.8 percent on Wednesday, the biggest one-day percentage rally since early December, as banks and miners led a broad rebound, encouraged by strong US corporate results and easing concerns over US debt obligations.
National Australia Bank bounced 2.6 percent to A$24.29 while BHP Billiton boosted the market with a 1.9 percent rise to A$43.44 after a faster-than-expected recovery in metallurgical coal production.
"The top-down fears aren't really taking a toll on earnings. Ultimately that's what will drive the market forward," said Colin Whitehead, an analyst at independent research house Fat Prophets. "I think we may be able to rally a little further from here," he said.
The benchmark S&P/ASX 200 index rose 81.6 points to 4,549.7, according to the latest data, its highest close since July 11 but well off highs above 4,900 seen in April.
New Zealand's benchmark NZX 50 index rose 0.5 percent to 3,408.4. The beaten down discretionary sector jumped 2.2 percent, even after top retailer Woolworths said it expected a tough year ahead for retailing. Woolworths finished up 0.7 percent at A$27.45 while department store Myer recovered 3 percent to A$2.44.