The local bourse has closed higher for a third straight day, finishing at a fresh five-month high after Federal Reserve chairman Jerome Powell delivered a dovish rate hike in the US.
The benchmark S&P/ASX200 index on Thursday gained 53.9 points, or 0.73 per cent, at 7,455.9.
The broader All Ordinaries added 54.8 points, or 0.72 per cent, at 7,672.6.
The gains came after the Fed raised rates as expected, while leaving the door open to a pause in hikes at its next meeting.
"I would say it’s certainly possible that we will raise (rates) again at the September meeting if the data warranted," Mr Powell said.
"And I would also say it’s possible that we would choose to hold steady."
The S&P500 finished flat, while the Dow Jones Industrial Average gained for a 13th consecutive session - its longest winning streak since 1987.
"The Fed has nodded in agreement with market expectations, and as a result, a symphony of harmony has resonated in the financial world," wrote Naeem Aslam, chief investment officer with Zaye Capital Markets.
"Like a perfectly orchestrated melody, today’s synchronised move stroked a chord of confidence among traders, and it is guiding them through the economic crescendo."
Closer to home, Friday's retail trade readout for June is expected to be the last piece of data the Reserve Bank will rely on in deciding whether or not to hike rates on Tuesday.
The futures market is pricing in only a 14 per cent chance of a rate hike following Wednesday's figures showing inflation easing.
On Tuesday it was pricing in a 41 per cent chance, according to the ASX's RBA Rate Indicator.
Every ASX sector finished higher except for energy and materials, which both declined after rallying earlier in the week.
The interest-rate-sensitive property sector was the biggest gainer, rising 3.4 per cent, with Goodman Group gaining 2.9 per cent and Scentre Group climbing 4.4 per cent.
In the financial sector, Macquarie dropped 4.4 per cent to a two-week low of $$175.03 after CEO Shemara Wikramanayake told the investment bank's annual general meeting the group's first-quarter net profit was down substantially from a year ago.
"Times will most likely be more difficult in the near term," chairman Glenn Stevens added.
All the big retail banks were higher, with NAB and CBA both climbing 1.5 per cent to $28.47 and $106.53 respectively.
Westpac added 1.2 per cent to $22.35 and ANZ gained 1.3 per cent to $25.78.
Pacific Current Group soared 32.2 per cent to an eight-year high of $10.31 after Regal Partners made a $573m, $10.77-per-share cash-and-scrip offer to acquire the asset manager.
Regal shares rose 1.2 per cent to $2.58.
The heavyweight mining sector finished 1.0 per cent lower, with BHP down 1.5 per cent to $46.18, Fortescue falling 3.4 per cent to $22.92 and Rio Tinto retreating 2.5 per cent to $117.80 after slightly missing first-quarter earnings expectations.
Regis Resources dropped 10.8 per cent to a four-week low of $1.865 after the gold miner gave weak 2023/24 production guidance due to issues at its Duketon mine in Western Australia.
In consumer staples, Bubs dropped 13 per cent to 20c after a move to oust the infant formula maker's board was voted down.
The Australian dollar was buying 67.94 US cents, from 67.69 US cents at Wednesday's ASX close.
ON THE ASX:
* The S&P/ASX200 index finished Thursday up 53.9 points, or 0.73 per cent, at 7,455.9.
* The All Ordinaries added 54.8 points, or 0.72 per cent, to 7,672.6.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 67.94 US cents, from 67.69 US cents at Tuesday's ASX close
* 95.19 Japanese yen, from 95.23 Japanese yen
* 61.27 Euro cents, from 61.16 Euro cents
* 52.49 British pence, from 52.48 pence
* 108.77 NZ cents, from 108.80 NZ cents.
