The local share market has snapped its four-day losing streak with its best gains in more than three weeks amid tentative signs of an uptick in building activity and retail spending domestically.
The benchmark S&P/ASX200 index on Tuesday finished up 69 points, or 0.93 per cent, to 7,520.5.
The broader All Ordinaries added 72.7 points, or 0.95 per cent, to 7,749.5.
It was the ASX200's best performance since a 1.65 per cent gain on December 14, with the index clawing back nearly 40 per cent of its losses from its losing streak.
The gains came after a similar rally on Wall Street, where the S&P500 rose 1.4 per cent after the New York Fed reported US consumers' inflation expectations had dropped to the lowest point in three years.
Closer to home, the Australian Bureau of Statistics on Tuesday announced bigger-than-expected jumps in retail turnover and building approvals in November.
But economists said the emergence of Black Friday sales had made it hard to know for certain whether discretionary spending momentum was actually strengthening or if shoppers had simply moved their Christmas buying to take advantage of sales.
Retailers still did well on Tuesday, with JB Hi-Fi adding 1.9 per cent to $53.78, Harvey Norman climbing 2.0 per cent to $4.15 and Super Retail Group climbing 2.5 per cent to $15.03
The tech sector was the biggest gainer, rising 2.0 per cent after AI chipmaker Nvidia's Nasdaq-listed stock closed at a record high overnight as it announced a new series of chips.
Brainchip gained 3.0 per cent, Xero added 3.0 per cent and Audinate climbed 3.5 per cent to an all-time high of $16.82.
The energy sector was the only one to lose ground, dipping 0.1 per cent after Saudi Arabia announced sharp price cuts to oil exports.
Woodside dropped 0.4 per cent and Santos slid 0.3 per cent.
ResMed was helping buoy the health care sector, rising 5.6 per cent to a four-month high of $26.41 despite releasing no news.
All of the Big Four banks finished higher, with Westpac adding 1.0 per cent to $23.10, NAB advancing 1.3 per cent to $30.90 and ANZ and CBA both gaining 0.9 per cent, to $25.89 and $113.02, respectively.
In the heavyweight mining sector, BHP rose 0.6 per cent to $48.97, Fortescue added 1.2 per cent to $28.06 and Rio Tinto rose 0.3 per cent to $131.90.
Alumina was the best performer in the ASX200, rising 7.8 per cent to 98c, after its partner, US mining giant Alcoa, announced it would shutter production at the ageing Kwinana alumina refinery south of Perth.
Alumina chief executive Mike Ferraro acknowledged the impact on the roughly 750 workers set to lose their jobs but said the decision was necessary given losses incurred at the 60-year-old refinery, together with its age, scale, operating costs and current bauxite grades.
WA Premier Roger Cook said it was a difficult day for Alcoa's workers and "a kick in the guts for the Kwinana and Rockingham communities".
The Australian dollar was buying 67.10 US cents, from 67.06 US cents at Monday's ASX close.
The Australian Bureau of Statistics will release consumer price index data for November on Wednesday.
Consensus expectations is the readout will report annual inflation eased to about 4.4 per cent, from 4.9 per cent in the 12 months to October.
ON THE ASX:
* The benchmark S&P/ASX200 index on Tuesday finished up 69 points, or 0.93 per cent, at 7,520.5.
* The broader All Ordinaries gained 72.7 points, or 0.95 per cent, to 7,749.5.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 67.10 US cents, from 67.06 US cents at Monday's ASX close
* 96.58 Japanese yen, from 96.78 Japanese yen
* 61.27 Euro cents, from 61.29 Euro cents
* 52.68 British pence, from 52.77 pence
* 107.49 NZ cents, from 107.44 NZ cents
