Australian shares rallied hard on Tuesday, after overseas gains indicated global markets had been able to absorb the impact of Friday night's terrorist attacks in Paris.
The energy sector was the market's top performer on the back of stronger oil prices, but it was the good gains in the major four banks that pushed the benchmark ASX200 index 2.3 per cent higher to 5118.2 and the broader All Ordinaries 2.2 per cent higher to 5174.3.
Wall Street had its strongest session in three weeks on Monday, with the Dow Jones increasing 1.4 per cent, as investors bet Friday's deadly attacks in Paris would have little long-term impact on the US economy and corporate earnings. 
In the battered commodities sector, oil prices rose after French air strikes in Syria but iron ore fell to a new four-month low overnight. Domestically, Reserve Bank board minutes from earlier in the month were released, suggesting that it was a relatively straightforward decision for the board to leave rates on hold and that further rate cuts may not be necessary.
The terrorist attacks in Paris "at this stage haven't had a huge impact on global markets," said Commsec market analyst Steven Daghlian. In Australia, "all the losses from yesterday (Monday) have been completely recouped.
"Commodity prices were up overnight, the price of oil jumped up which helped the energy sector today. It's the oil and gas companies that are doing best but they are only about 5 per cent of the market.
"But the major banks are up 1.4 per cent and that's lifting the market overall."
The big four banks all surged - ANZ 2.2 per cent to $26.49, Commonwealth Bank 3 per cent to $77.07, National Australia Bank 2.3 per cent to $28.50 and Westpac 1.9 per cent to $30.60.
BHP Billiton, whose shares have been belted in the past week after the Brazilian dam burst, reversed some of its lost ground to close 1.3 per cent higher at $20.37. The miner will hold a board meeting in the coming days ahead of its annual general meeting in Perth on Thursday.
Rio Tinto added 1.4 per cent to $48.10. Fellow blue-chip Telstra put on 2.5 per cent to $5.29.
Victorian energy operator AusNet Services shot up 6 per cent to $1.49 after lifted first half profit to $374.5 million, thanks in part to tax benefits.
The net profit for the six months to   September 30, which compared to a $4.9 million loss for the prior corresponding period, included a $131.5 million tax benefit arising from a company restructure and another $28.1 million from the settlement of a dispute with the Australian Taxation Office.
QBE shares dropped as much as 6 per cent, but recovered to close 2 per cent lower at $12.91, after the insurer said insurance profit margins were expected to come in at the bottom end of a predicted 8.5-10 per cent growth target.
Australia's No.1 insurer by premium income also said gross written premiums were under pressure due to pricing and weakness in some segments and that its attritional claims ratio had come under pressure in its key markets of Australia, New Zealand and North America.
The good news continues to roll in for Qantas investors: the airline has regained its investment-grade credit rating after Standard & Poor's upgraded the airline's score by one notch to BBB-, citing a strengthened balance sheet. S&P had downgraded Qantas to junk status in   December 2013. Qantas climbed 5.9 per cent to $3.76.
Sales of a2 Milk's infant formula have soared more than 300 per cent in four months to account for almost half of the trans-Tasman dairy company's total revenue.
A2's Platinum infant formula, which launched in   August 2013, is one of the brands that has been stripped from Australian supermarket shelves on the back of surging Chinese demand.
Its sales totalled $38 million in the four months to   October 31 - a 337 per cent increase compared with the same period last year.
A2 put on 4.7 per cent to 88 cents on Tuesday.