The local share market has bounced back from Tuesday's losses and then some, with every sector except energy finishing higher.
After losing 92.5 points the day before, the benchmark S&P/ASX200 rallied for 113 points, 1.63 per cent, to 7059.2, in its best single-day performance since November 11.
The broader All Ordinaries climbed 118 points, or 1.65 per cent, to 7249.1.
"They've had a Lazarus-like recovery," said IG market analyst Tony Sycamore. "Broadly speaking, everything's every bouncing back nicely."
A trading veteran with over 25 years experience in financial markets, Mr Sycamore said his sources were telling him that Tuesday's selloff was driven by the execution of a single enormous futures order for 27,000 contracts, or a notional value of $4.7 billion.
To put that in perspective, the average daily volume over the past 30 days has been around 30,000 contracts. The order is believed to have been automatically triggered by the ASX200 dipping below its 200-day moving average at around 7010, Mr Sycamore said.
But it reclaimed that important technical level on Wednesday, and while Mr Sycamore was still a bit cautious, he said that "the instant rejection of that break lower yesterday is a pretty good sign that it wasn't meant to be down there".
Tech stocks were the biggest gainer, climbing 2.9 per cent as Wisetech Global added 3.2 per cent and Xero climbed 3.6 per cent.
The financial sector was close behind, growing 2.2 per cent with all the big banks submitting a solid performance.
Westpac gained 3.1 per cent to $23.44, CBA added 2.1 per cent to $103.14, ANZ advanced 2.7 per cent to $23.63 and NAB closed up 1.0 per cent at $29.70.
Investment bank Macquarie gained 3.2 per cent to $169.87.
In the heavyweight mining sector, BHP rose 1.6 per cent to $46.04, Fortescue Metals rose 2.8 per cent to $20.97 and Rio Tinto advanced 1.7 per cent to $117.34.
Goldminer Evolution climbed 3.3 per cent to a six-month high of $3.14 as the price of the precious metal hovered just below $US1,850 an ounce, its highest level since June.
Consumer discretionary stocks were collectively up 2.2 per cent, with KMart and Bunnings owner Wesfarmers rising 2.1 per cent to $46.34, JB Hi-Fi rising 4.4 per cent to a two-week high of $43.96 and Eagers Automotive growing four per cent to a two-week high of $11.25.
The energy sector was the only spot of red, after oil prices dropped sharply overnight on fears of a global recession and a stronger US dollar.
Woodside was down 2.4 per cent to $34.50, Santos declined 1.7 per cent to $6.96 and Geelong refinery owner Viva Energy retreated 1.9 per cent to $2.62.
The Australian dollar was buying 67.99 US cents, little changed from Tuesday's local close of 67.98 US cents.
Looking forward, in the United States overnight and early Thursday there will be several potentially market-moving announcements, including the release of Federal Reserve Open Market Committee (FOMC) minutes and a monthly gauge of factory activity, known as ISM Manufacturing PMI.
Commonwealth Bank's CommSec unit also on Wednesday released a report on the year ahead, with chief economist Craig James tipping the ASX200 to rise modestly by four to seven per cent to around 7350-7550.
There was upside potential to the forecast if China successfully reopens or the war in Ukraine ends, but a deeper recession in major economies could also lead to a downward revision in the forecast.
ON THE ASX:
* The benchmark S&P/ASX200 index closed Wednesday up 113 points, or 1.63 per cent, to 7059.2.
* The broader All Ordinaries gained 118 points, or 1.65 per cent, to 7249.1.
One Australian dollar buys:
* 67.99 US cents, from 67.98 US cents at Tuesday's ASX close
* 88.85 Japanese yen, from 88.20 Japanese yen
* 64.30 Euro cents, from 63.74 Euro cents
* 56.70 British pence, from 56.31 British pence
* 108.34 NZ cents, from 107.43 NZ cents.