The S&P/ASX200 gained 49.3 points on Tuesday, up 0.57 per cent, to 8735.7, as the broader All Ordinaries gained 44.3 points, or 0.5 per cent, to 8903.5.
Real estate stocks and miners led nine of 11 local sectors higher after weeks of selling pressure, while IT stocks dropped almost three per cent and consumer staples traded just below break-even, Vantage senior market analyst Hebe Chen said.
"Softer oil and Wall Street's tech-led record have given investors some breathing room, but today's rebound is still more about buying the dip than a clean shift in the macro story," she told AAP.
"The biggest wall is still bond yields — long-term yields remain near multi-decade highs, while the RBA tightening cycle and elevated oil prices only keep the ongoing risk alive."
The local recovery was likely to stay fragile until both those pressures eased, meaning a clean, sustainable rebound was elusive for now, Ms Chen said.
Raw materials stocks charged 0.9 per cent higher as mega-miners BHP and Rio Tinto tracked a rebounding copper price, while battery minerals and rare earths also bounced with more than two per cent jumps for PLS and Lynas.
Gold producers remained sluggish, with the precious metal trading hands at $US4124 ($A5191) an ounce and on par with its late-September low.
Real estate stocks jumped 1.1 per cent in a broad-based rally that left segment giant Goodman Group out in the cold as its shares dipped 0.7 per cent to $26.13.
The heavyweight financials sector gained 0.7 per cent, tracking with modest gains across banks, insurers and financial services, as the segment continued to coil within a tight trading range it has held for almost a month.
The market rebound wasn't as kind to consumer discretionaries, which eked a 0.3 per cent gain as major bank surveys pointed to cratering consumer confidence.
According to ANZ's survey, confidence was on par with the national COVID lockdown in early 2020, while Westpac's print was among the 40 worst reads since it began taking records in the 1970s.
"More than 80 per cent of Australians now expect mortgage rates to rise further, while the time to buy a major household item or property remains well below its long-run average," Global X senior ETF strategist Marc Jocum said.
"With petrol prices still elevated and the dream of owning a home feeling increasingly distant, the R-word (recession) may be starting to muscle its way into the great Australian barbecue conversation."
The Australian dollar is buying 69.69 US cents, up from 69.41 US cents on Friday at 5pm.
ON THE ASX:
* The S&P/ASX200 rose 49.3 points, or 0.57 per cent, to 8735.7.
* The broader All Ordinaries gained 44.3 points, or 0.50 per cent, to 8903.5.
One Australian dollar trades for:
* 69.69 US cents, from 69.41 US cents at 5pm AEST on Monday
* 110.17 Japanese yen, from 109.53 Japanese yen
* 62.16 euro cents, from 62.01 euro cents
* 52.74 British pence, from 52.54 pence
* 124.52 NZ cents, from 124.10 NZ cents
9°C