Australian shares have joined in the recovery as equity markets around the world celebrate the stabilisation of China's stock market.
At one point yesterday, the Shanghai market had fallen a dramatic 10% in just two trading sessions (including an 8.5% fall on Monday), reversing much of the progress that had been made over the previous three weeks.
However, it eventually managed to regain some composure after the China Securities Regulatory Commission promised to continue stabilising the market and "prevent systemic risk", which saw a flurry on Wall Street overnight.
Local investors have also embraced the recovery, sending the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) up an impressive 1.1% around lunchtime in a rally led by the nation's biggest miners.
Rio Tinto Limited (ASX: RIO) and Fortescue Metals Group Limited (ASX: FMG), for instance, are up 1.4% and 6.7% respectively, after iron ore rose sharply overnight, while BHP Billiton Limited (ASX: BHP) is also benefitting from a strong rise in the copper price to trade 2.6% higher, above the $26 per share mark.
Meanwhile, Woodside Petroleum Limited (ASX: WPL) and Santos Ltd (ASX: STO) are up 1.2% and 1% respectively and South32 Ltd (ASX: S32) is up 2.1%.
Pleasingly, the gains haven't been limited to the resources sector with the banks and other blue-chip stocks also rising strongly. National Australia Bank Ltd. (ASX: NAB) is up 1.6% while its rivals Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) have risen between 0.7% and 1% each.
Elsewhere, Telstra Corporation Ltd (ASX: TLS) rose marginally and CSL Limited (ASX: CSL) hit a new record high (post share-split), lifting 1.6%.
Although it is impossible to tell whether, or how long the market's optimism will last, it is important to realise that these periods of uncertainty can be one of the greatest times to buy high-quality companies. Indeed, I've put some more money to work recently and have another few companies I am particularly interested in buying in the near future.