After overnight gains on Wall Street, Australian stocks managed to rise during mid-day trading. Also, the country's rate of unemployment fell again in December to 5.5%, from a revised November figure of 5.6%.

While the benchmark S&P/ASX 200 surged by 47.5 points or 0.98% to 4,915.6 points, the broader All Ordinaries, on the other hand, gained 45 points, or 0.92%, to hit a reading of 4,945.1.

Based on individual industries, energy rose by 45 points or 0.28%, and materials added 205.6 points or 1.59%. Financials and utilities as well managed to hike by 49.9 points and 18.1 points respectively.

Among major risers were BHP Billiton, which rose 1.76% $43.88, and Rio Tinto, which gained 2.8% to $79.28.

In financial stocks, CBA rose by 1.18% and ANZ gained 0.49%, with Westpac and NAB rising by 1.39% and 1.08%, respectively.

“The market is responding very, very well. That unemployment number was a positive tick for the Australian economy and a positive for the banks. That bodes very well for their bad-debt cycle. But obviously, it is not great news for potential (interest) rate hikes down the road”, said Macquarie Private Wealth adviser Helen Spencer.