The Australian share market ended above 1% higher because of the profits in the mining and energy divisions.

David Taylor, CMC Markets Analyst said that the market went upwards in spite of one more round of selling on Wall Street during the night.

Taylor further said that buyers will keep coming back in the market and it seems like the investors are going to stay long at the moment.

There has been an increase in the stock exchange index because of better base metal and gold prices giving mining sector a boost.

BHP Billiton increased 1.91% to $40.40 and Rio Tinto gained 2.3% to $71.43.

According to the sources, Rio and Potash Corp may acquire Russian potash miner Uralkali, as the Government is likely to go for complete revamp of the fertiliser industry.

Newcrest Mining rose 2.51% to $34.70 and Lihir Gold jumped 2.37% to $4.31.

In crude sector, Woodside Petroleum recouped from the previous losses to close at 1.21%, $5.84.

Macquarie Group gained 1.45% to $38.45.

Bluechip Telstra Corp. went down 0.68% to $2.92, after moving to an all-time low of $2.82 in the previous session.

Supermarkets like Woolworths went up 0.41% to $26.74, whereas Wesfarmers rose 1.94% to $30.96.