The benchmark S&P/ASX200 index was up 54.9 points or 1.2% to 4629.6 at 12.00 AEST. The Australian dollar also gained ground, moving up to US91c.
ANZ shares gained 0.7% to $23, while Commonwealth Bank shares jumped 2.6% to $52.77. Westpac shares moved up 1.1% to $26.40, while NAB moved up 2.4% to $29.74.
In the US, stocks moved up due to data that showed the economy grew by 3.5% during the September quarter, following a year of economic contraction. Investors viewed the news as signs the economy was in recovery, with stocks recording their biggest percentage gains since 23 July.
The Dow Jones Industrial Average gained 199.89 points or 2.05% to 9962.58, while the Standard & Poor's 500 Index moved up 23.48 points or 2.25% to 1066.11.
Meanwhile, home values increased by just 0.1% during September in the lowest monthly result during 2009, according to the latest RP Data-Rismark National Capital City Home Value Index.
The figures also show that dwelling values have managed to grow by 8.1% during the first nine months of the year.
But values managed to rise on a quarterly basis by 2.5%, fueled by a 0.7% gain in July and a 1.8% jump during August. During the first nine months of the year, Sydney values have grown by 9.2% to $550,273, with Melbourne values jumping a massive 12.6% to $471,736.
Brisbane values grew by 3.5%, Adelaide by 3.4%, Canberra by 8.1% and Hobart by 6.3%. Meanwhile, Perth values have increased by 2.6% while Darwin values increased by a huge 14.1%.
Macquarie Group first half profit above forecast
Macquarie Group has announced a first half cash profit of $479 million besting its forecast of $435.5 million, and said it expects similar results during the second half.
But despite the optimistic outlook, chief executive Nicholas Moore said market conditions are still volatile, making forecasts difficult to predict.
"We currently expect the profit for the second half of 2010 to be broadly in line with the first half but this remains subject to market conditions and significant swing factors and excludes the impact of one-off items," he said in a statement.
"While there have been some improving trends in a number of major markets, overall we continue to maintain a cautious stance with a conservative approach to funding and capital."
Mining giant Rio Tinto has appointed David Peever as its managing director of its Australian operations, to replace Stephen Creese who resigned earlier this month. Peever has most recently served as managing director of Rio Tinto Marine.
"It is quite fitting that David's career with Rio Tinto has been comprehensive, spanning disciplines, product groups and regions. This breadth of experience will prove invaluable in his new role," iron ore chief Sam Walsh said in a statement.
Aquila Resources shares placed in trading halt
Meanwhile, shares in Aquila Resources have been placed in an open trading halt at the company's request ahead of an "imminent announcement" of the Foreign Investment Review Board's response to the $US240 million bid made by China steelmaker Baosteel.
In a statement to the ASX, Aquila said it will remain in a trading halt until an announcement is made, which is expected before 3 November.
Wesfarmers has named former WA premier Alan Carpenter as its new executive general manager of corporate affairs, with the position expected to be filled in early December.
"Alan is a very talented person who, as a senior Minister and Premier, made a significant contribution to Western Australian public life," Wesfarmers managing director Richard Goyder said in a statement.
"I am looking forward very much to working with him in the post-politics phase of his career. His knowledge of government and policy development, combined with his pre-politics life as a senior journalist, will be of great value to Wesfarmers."
