Financial stocks led the gains, reflecting a shift of investment from resources to financials, buoyed by a 50 basis points rate cut from the Reserve Bank of New Zealand.

In the technology sector, notable performers included Block, which rose over 4%, and Zip, which surged nearly 7%, marking a significant day for tech stocks.

The big four banks—Commonwealth Bank, National Australia Bank, ANZ Banking, and Westpac—each saw gains of almost 1%.

Eight out of eleven industry sectors closed in positive territory, with telecommunications and IT sectors leading the way.

Meanwhile, crude oil prices fell sharply, with West Texas Intermediate futures dropping over 4% amid eased supply disruption concerns.

Despite the drop in oil prices, energy stocks like Woodside and Santos saw slight increases due to earlier spikes.

The Australian dollar fell to a three-week low against the US dollar, trading at 67.60 US cents.

On Wall Street, stocks gained on Tuesday, driven by strong technology performance, which likely contributed to the positive sentiment in the Australian market.

The benchmark ASX200 closed up 10.5 points at 8187.4, while the All Ordinaries index gained 13.1 points to settle at 8456.8.

Australian shares experienced a positive trading session on Wednesday, with the S&P/ASX 200 index climbing above 8,200.

This upward trend in the Australian sharemarket was influenced by a rebound on Wall Street, despite some declines in major mining and energy stocks.

Overall, the market showed a mixed performance, with 523 stocks rising, 499 declining, and 379 remaining unchanged on the Sydney Stock Exchange.