The S&P/ASX200 rose 48.1 points on Wednesday, up 0.54 per cent to 9,007, as the broader All Ordinaries gained 56.2 points, or 0.61 per cent, to 9,238.7.
An almost four per cent surge in NAB shares supported the financial sector after the bank's $2.2 billion December-quarter net profit blew away expectations.
"We have seen a reasonably good earnings season so far, and with the ASX200 pushing back towards 9000, there's some green shoots of optimism that maybe the outlook for Aussie corporates is improving," Capital.com senior market analyst Kyle Rodda told AAP.
As for NAB becoming the third of the big four to beat earnings expectations and whether this could justify lofty valuations in the sector, he said it seemed less likely.
"I think it'll ease the concerns but won't diminish them, and it will still mean that banks are trading at a pretty expensive multiple," Mr Rodda said.
"The risk-reward is kind of questionable with valuations up here."
Elsewhere in finance, Suncorp shares tumbled more than four per cent after the company paid out $1.3 billion in natural disaster claims, mostly relating to destructive storms in Queensland.
Of 11 local sectors, only basic materials lost ground, slipping 0.2 per cent as IT stocks, real estate and consumer cyclicals each jumped more than one per cent.
Gold miners were mixed but broadly lower, despite the precious metal gaining ground during the session to trade hands at $US4,936 ($A6,981) an ounce.
BlueScope Steel shares jumped 2.6 per cent to $28.74 as a takeover offer from the Stokes family-controlled SGH came back into play in a deal worth roughly $15 billion at $32.35 per share.
In the mega caps, BHP eased 0.9 per cent after surging to record highs on Tuesday on the back of strong first-half results, while Rio Tinto and Fortescue edged higher.
Battery minerals and rare earths producers caught bids, with Lynas Rare Earths gaining more than three per cent and Liontown shares jumping more than six per cent to $1.85.
Nickel Industries and Iluka Resources each traded more than five per cent higher after handing down solid trading updates.
Energy stocks firmed by 0.6 per cent despite Santos slipping by the same magnitude in the other direction after its full-year profit shrank for a third straight year.
Coal producers were broadly lower while investors bought up uranium stocks, with Paladin, Deep Yellow and Bannerman Energy up between four and 5.6 per cent.
Oil prices edged higher during the session after slipping overnight on reports the US and Iran had come to an understanding on the main principles for an agreement to curb Iran's nuclear ambitions in return for sanction relief.
Real estate stocks rallied 1.5 per cent on the back of strong earnings from Dexus and Mirvac, which each pushed more than 5.8 per cent higher.
Vicinity Centres was less impressive, slipping 0.8 per cent despite significantly improving its first-half net profit after tax to $805.6 million, compared to $492.6 in the 2025 equivalent half.
The Australian dollar is buying 70.69 US cents, up slightly from 70.62 US cents on Tuesday at 5pm, firming ahead of Australian labour force data due on Thursday.
ON THE ASX:
* The S&P/ASX200 rose 48.1 points, or 0.54 per cent, to 9,007
* The broader All Ordinaries gained 56.2 points, or 0.61 per cent, to 9,238.7
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 70.69 US cents, from 70.62 US cents at 5pm AEDT on Tuesday
* 108.5 Japanese yen, from 108.01 Japanese yen
* 59.68 euro cents, from 59.64 euro cents
* 52.14 British pence, from 51.90 British pence
* 117.84 NZ cents, from 117.06 NZ cents
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