Australian shares are poised to bounce sharply amid a global rally on hopes of a US economic stimulus deal.

The SPI200 futures contract was up 278 points, or 5.9 per cent, at 4992 points at 0800 AEDT on Wednesday, suggesting a huge surge as the market opens.

Analysts say it is shaping up to be another positive day for local investors but are cautious about how long any bounce will last.

“The moves do look like another bear market rally, though given how oversold valuation metrics and market technicals had suggested global stocks had become, there’s a sense that perhaps equity markets have more than just a day’s recovery in them,” IG Markets analyst Kyle Rodda says in a note.

Overnight the US, European and Chinese stock markets also surged on hopes a $US2 trillion stimulus deal would soon be clinched.

The local bourse rallied on Tuesday from a near eight-year low with the US Federal Reserve taking drastic action to shore up markets and new coronavirus cases seeming to plateau in Italy.

The Australian dollar was buying 59.57 US cents at 0800 AEDT on Wednesday up from 59.39 US as the market closed on Tuesday.