The local market welcomed what Ben Bernanke, chairman of the US Federal Reserve, said over the weekend that he will do whatever it takes to boost the US economy. His statement proved to be the positive impetus for Wall Street, which rallied strongly on the weekend.

Investor confidence has definitely returned to the market and we saw the Financial sector, Industrials and Materials sector leading the charge today.

Gold miner Kingsgate Consolidated Ltd jumped after its full year profits increased by 124%. Energy stock Santos traded higher after it successfully signed up a gas deal with APACHE to develop Halyard natural gas field offshore in Western Australia.

The Australian dollar rose against the Japanese Yen after the Bank of Japan said it will hold an emergency meeting, adding to speculation that the bank will intervene in the currency.

The Aussie was also trading higher against the US dollar on the back of strong performance in the commodity and equity markets. The AUD/USD pair may maintain a short-term bullish trend after strong trading session since last Friday.