The S&P/ASX 200 index firmed about 0.5pc to close the day's trading at 6,593.40, extending gains into a third consecutive session.
High-level negotiations between Washington and Beijing are due to begin on Thursday, though chances of a resolution appear low after President Donald Trump said a quick trade deal was unlikely.
"I think it's a common word - 'hopium' - there's a lot of hope that we do see something.
However, if you look at it realistically, there's really not a lot that I can see that would motivate China to getting a major deal done," said Brad Smoling, managing director at Smoling Stockbroking.
"The reality is, because of decades of U.S. manufacturing being hollowed out and outsourced, they're now in the dire position of renegotiating a trade deal with not a lot to offer."
Gains on the Australian bourse were led by energy stocks , which had their best day in almost two weeks.
Oil and gas explorer Santos Ltd rose more than 2pc after it flagged "extremely positive" oil flows at a field in Western Australia.
Mining stocks advanced, with index heavyweights Rio Tinto and BHP Group closing 1.1pc and 0.7pc higher, underpinned by a jump in iron ore prices.
Financial stocks firmed about 0.4pc, with Commonwealth Bank of Australia Ltd, the country's biggest lender, finishing the session up 0.9pc.
Shares of Australia and New Zealand Banking Group followed the broader trend, closing 0.4pc higher, even as the lender flagged a A$559 million ($376 million) hit to its second-half profit from increased provisions for customer-related remediation.
However, gold stocks retreated 0.8pc, tracking a decline in bullion prices as investors moved back into risk assets.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index rose 0.4pc to 11,016.15, closing higher for a third consecutive session.
Fonterra , the world's largest dairy producer, finished 1.3pc higher after it named Mercury NZ's CEO Fraser Whineray to the newly-created role of chief operating officer following last month's strategy revamp announcement.