The benchmark S&P/ASX200 index had gained 51.6 points, or 0.66 per cent, to 7,841.3 by noon, while the broader All Ordinaries was up 60.3 points, or 0.75 per cent, to 8,073.6.
"Today the Aussie share market is expected to dart 0.95 per cent higher to 7,867 points and move out of oversold territory," Moomoo market strategist Jessica Amir said.
"That also means, the Aussie market will be out of a correction ... and be back where it was last Tuesday."
Equities markets in Australia, the US and Asia slumped last week over concerns President Donald Trump's escalating trade war and government spending cuts could tip an already slowing US economy into recession.
The S&P/ASX200 has rebounded almost 1.5 per cent since hitting seven-month lows on Thursday, and is almost nine per cent lower than its all-time high of 8,615.2 reached in mid-February.
Ten of the 11 ASX sectors were trading higher by lunchtime on Monday, with only healthcare stocks slipping lower, down 0.3 per cent.
Materials, energy and financials stocks were leading the bourse higher, up 1.7 per cent, 1.3 per cent and 0.5 per cent respectively.
Australian miners rose on news of incoming domestic stimulus in China, lifting the iron ore price to the $US103 level and helping push BHP and Rio Tinto 1.8 per cent and 2.4 per cent higher, while Fortescue surged 3.9 per cent.
The stimulus news helped push the oil price and energy stocks higher, with Woodside up 1.8 per cent, as Brent Crude climbed two per cent since Friday to $US70.93.
The crude price was also likely supported by escalating conflict in the Middle East after US air strikes on Houthi rebels and concerns over progress for a ceasefire in Ukraine.
Three of the big four banks were trading higher, with ANZ and CBA up 1.0 per cent, Westpac up 0.8 per cent and NAB down 0.6 per cent.
NAB fell after announcing it was on the hunt for a new chief financial officer after Westpac poached finance chief Nathan Goonan. NAB's business and private banking group executive Rachel Slade is also stepping down.
Another quiet week is ahead for Australian data, apart from employment figures on Thursday. Looking further afield, US retail figures are expected overnight, and central banks in the US, Japan and the UK will set their interest and funding rates later this week.
The Australian dollar is buying 63.29 US cents, up from 62.95 at 5pm on Friday.
