By midday on Tuesday, the S&P/ASX200 rose 19.3 points, up 0.22 per cent, to 8,872.3, as the broader All Ordinaries gained 24.4 points, or 0.27 per cent, to 9,145.3.
US tech stocks helped Wall Street reach a record high and assisted by constructive language from US-China trade talks, but mainly from investor anticipation of the imminent Federal Reserve rates decision on Thursday.
"Ultimately, the push higher is coming as markets buy into a looming Fed cut, which, based on market pricing, and any rational argument, is all but certain," Capital.com senior financial markets analyst Kyle Rodda said.
Six of 11 local sectors were trading higher by lunchtime, led by materials and energy stocks while real estate and industrials lagged.
Mining stocks were up 0.9 per cent at noon, with goldminers Northern Star gaining 1.6 per cent, Genesis Materials up 2.7 per cent and Perseus Mining 3.1 per cent in the green.
The sector's heavyweights BHP was up 0.9 per cent, Rio Tinto up 1.5 per cent and Fortescue was also in the green.
Healthcare was down after biotech giant CSL recorded a 0.8 per cent slump on the announcement of a deal to potentially acquire a Dutch biotech company VarmX BV which is developing a treatment for a deadly side effect of blood thinners.
CSL will make an upfront payment of $US117 million ($AUST175m) for the exclusive right to buy the company, weeks after it announced 3000 job cuts and spun off its vaccine arm in August.
Super Retail Group, which owns Rebel Sport and Supercheap Auto, fired its chief executive and managing director on Tuesday following revelations of an undeclared workplace relationship.
Anthony Heraghty's termination over his relationship with the company's former chief human resources officer led to a 2.7 per cent share price drop, but the controversy didn't spread to the wider consumer discretionary sector which was up 0.6 per cent.
The company in April 2024 had said it expected to be sued by two employees who claimed the relationship wasn't disclosed and that it led to workplace bullying, misuse of funds and adverse treatment.
Financial stocks were trading flat, stemming from mixed results among the big four banks, with Westpac and NAB in the green while ANZ and CBA losing ground.
Coal miner New Hope contributed to the energy sector's, jumping 7.7 per cent, despite reporting an eight per cent drop in annual profit.
Real estate stocks were the biggest losers, dropping 0.4 per cent, during mid-morning trade.
The Australian dollar is buying 66.69 US cents, up from 66.57 US cents on Monday at 5pm.
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