Aust stocks open sharply higher

Local market surges following strong Wall St leads on debt deal optimism.

The Australian stock market opened stronger following positive leads from Wall Street on growing optimism regarding a deal on the US debt ceiling.

At the 1015 AEDT official market open, the benchmark S&P/ASX200 index was 1.03% higher at 5,261.3 points, while the broader All Ordinaries index lifted 1% at 5,258.4 points.

IG market strategist Stan Shamu said the local market was expected to ride the positive leads from Wall Street to a strong open, buoyed by a strong performance from the resources sector.

"The risk-on trade will be on headline watch all session long as US political leaders try to knock up a deal," he said.

In economic news on Tuesday, the Reserve Bank of Australia is due to release the minutes of its October board meeting.

Meanwhile, the Australian Bureau of Statistics releases August lending finance and September new motor vehicle sales data.

In equities news, Rio Tinto is slated to release its third quarter operations review.  

In Australia, the market on Monday fell, weighed down by investor nervousness as the deadline approaches to resolve the US political deadlock over the debt ceiling.

The benchmark S&P/ASX200 index was down 23 points, or 0.44%, at 5,207.9.

The broader All Ordinaries index was down 22.3 points, or 0.43%, at 5,206.5.