The Australian share market had gained more than 1 per cent in the early afternoon, supported by a strong rebound in the mining sector.

Among miners, BHP Billiton soared 8 per cent to a week-high of $15.34 as oil prices rebounded by more than 5 per cent, with Brent trading at $US29.44 by mid-afternoon.

At a news conference, after the ECB kept its main rates on hold, the central bank’s president Mario Draghi said its policies would be reviewed and possibly reconsidered as early as March.

Most analysts were not expecting any further stimulus, in the form of interest rate cuts, before June.

Oil prices also surged towards their biggest gain this year, with a rise of more than 5 per cent.

The Dow Jones Industrial Average gained 116 points, or 0.7 per cent to 15,883.

The S&P 500 added 10 points or 0.5 per cent to 1,869 and, despite a highly volatile trading session, the Nasdaq closed unchanged at 4,472.

European markets surged overnight, in response to the prospect of further stimulus from the ECB.

In London, the FTSE 100 jumped 1.8 per cent to close at 5,774.

Germany’s DAX added 1.9 per cent to 9,574 and in Paris the CAC 40 gained 2 per cent to 4,206.

At the same time, the Australian dollar was worth 70.1 US cents, having strengthened by more than 1.5 per cent overnight.

On the cross-rates, it was buying 64.42 eurocents, 49.25 British pence, 82.57 Japanese yen and $NZ1.071.

West Texas crude oil had risen to $US29.50 a barrel, Tapis had edged up to $US30.28 and spot gold had edged up slightly to $US1,101.26 an ounce.