The Australian share market has rebounded following a strong rally on Wall Street and European markets on Friday.

Wall Street’s benchmark S&P 500 index gained 2 per cent, as did the blue chip Dow Jones Industrial Average.

The tech-focused Nasdaq was up 1.7 per cent.

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The major markets in Europe rose between 2-5 per cent, including a strong 3.1 per cent rebound for London’s FTSE.

Australia’s share market has had a much more modest rebound, with the ASX 200 rising 0.9 per cent to 4,807 by 1:42pm (AEST) and the broader All Ordinaries up 42 points to 4,859.

The gains come following large falls last week, where the market dropped on four out of five days, including one fall of almost 3 per cent – the worst one-day decline since September.

Today’s rebound has been led by the resources sector.

BHP Billiton was up 5.1 per cent to $15.86, with Rio Tinto 3 per cent higher and Fortescue up 4.5 per cent.

Outside the big iron sector, South32 was up 4.9 per cent to $1.13 and Oz Minerals 4.25 per cent.

In the mining sector, Newcrest was a major laggard, trading down 10 cents at $16.29 after announcing a half-year profit of $81 million, down 55 per cent from $180 million in the same period a year earlier.

Energy stocks were having a strong day after crude oil prices jumped on Friday, with Woodside up 3.1 per cent.

The major banks, a key factor behind the recent sell-off, were also trading higher.

ANZ’s 2.2 per cent rise to $22.66 was leading the way, with NAB up 1.5 per cent, Westpac 1.1 per cent and the Commonwealth Bank rising 0.5 per cent.

The big drag on Australia’s market today was Telstra, down 3.2 per cent to $5.39 ahead of its half-year profit report on Thursday.

The Australian dollar was rising on the improved sentiment and worth 71.4 US cents, 63.65 euro cents, 81.3 Japanese yen and 49.2 British pence.

– ABC