Easing concerns over Europe's debt crisis fuelled a massive rally on the Aussie market today.

Stocks logged their biggest gain in almost three years after European officials pressed ahead with plans to recapitalise the region's troubled lenders.

Financials were the session's biggest gainers, with all four big banks rising more than 4%; NAB was the standout, up 5%.

Mining stocks strengthened amid rebounding commodity prices. BHP climbed 3.1% and Rio Tinto added 4.9%.

Energy stocks firmed on the back of last night's surge in crude oil. Woodside advanced 4.7% whilst Paladin flew 16.2%.

The ASX 200 soared 143 points (+3.7%), settling at 4070.