The Aussie market recovered from a shaky start to finish the session firmly in positive territory.

Stocks were buoyed by progress on Greece's bailout package and optimism ahead of tonight's meeting between Fed officials in the US.

Retailers were driven higher by David Jones, which rose 2.2% after reaffirming its 1H12 profit guidance.

The rebound in risk appetite spurred the key miners; BHP and Rio Tinto strengthened around 1% each.

Elsewhere, Lynas slumped 12.3% amid concerns over falling rare-earths prices.

NAB was the best performer among the big four, up 0.9%. CBA slipped 1%.

The ASX 200 advanced 32 points (+0.8%), closing at 4072.