The Australian share market has gotten off to a flying start again as investors eyed bargains after a volatile few sessions following Britain's shock vote to leave Europe, taking cues from gains across world markets.
The benchmark index was trading comfortably above the one per cent mark in early trade, led by gains in energy and resources stocks.
Traders said the gains were a result of short covering as well as bargain buying from investors.
"There is a bit of repricing at the moment and that is encouraging," optionsXpress market analyst Ben LeBrun said.
"However, there is still a lot of uncertainty out there and I am a bit concerned that we are overpricing the optimism."
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Overnight, Wall Street recorded big gains for a second day as investors continued to scour for bargains and digest the fallout from Britain's stunning vote to leave the European Union.
The Dow Jones industrial average rose 1.64 per cent, while the S&P 500 gained 1.7 per cent.
Apart from the uncertainty about how Britain will pursue its EU exit and worries about the US Federal Reserve's plans on interest rates, local investors will have an eye firmly on the results of the Federal elections this weekend, Mr LeBrun said.
In the local market, energy and resources were among the best performers.
Origin Energy, Santos and Woodside Petroleum were all trading more than 2.5 per cent higher on the back of a rebound in oil prices, which inched back close to $US50 a barrel.
Mining giants BHP Billiton and Rio Tinto were also both up around two per cent, and Fortescue was up 2.2 per cent at $3.50, as iron ore prices stayed firmly above $US50 a tonne.
Among the four major banks, ANZ and NAB were up nearly two per cent, while CBA and Westpac were trading about one per cent higher.
Kathmandu shares jumped nearly 20 per cent to $1.49 each after the outdoor equipment retailer slightly raised its forecast for annual earnings following better margins from new products and cost savings.
KEY FACTS:
* At 1041 AEST on Thursday, the benchmark S&P/ASX200 index was up 73.5 points, or 1.43 per cent, at 5,215.9 points.
* The broader All Ordinaries index was up 72.8 points, or 1.39 per cent, at 5,293.8 points.
* The September share price index futures contract was up 79 points at 5,172 points, with 14,800 contracts traded.
* National turnover was 681.5 million securities traded, worth $980.2 million.
