At noon AEST on Thursday, the benchmark S&P/ASX200 index was up 53.6 points, or 0.67 per cent, to 8,041.2, while the broader All Ordinaries was up 61.2 points, or 0.75 per cent, to 8,256.4.
Overnight the US Bureau of Labor Statistics reported US consumer prices rose 0.3 per cent in August, a touch higher than the 0.2 per cent that economists had expected. Annual inflation came in at 2.5 per cent.
ANZ researchers Brian Martin and Daniel Hynes said the US market's implied odds of a half a percentage point cut by the Federal Reserve next week fell from around 35 per cent to 15 per cent after the readout.
Wall Street equities initially sank but then rallied in what Capital.com analyst Kyle Rodda called a "classic dip and rip move" that came without a noteworthy catalyst.
The S&P500 finished up 1.1 per cent and the Nasdaq gained 2.2 per cent, providing a strong positive lead for the local bourse.
Nine of the 11 sectors of the ASX were in the green, with telecommunications flat and materials down 0.2 per cent.
The tech sector was the biggest gainer, up 1.9 per cent as WiseTech Global rose 3.3 per cent and Nuix climbed 7.4 per cent.
Uranium and nickel developers were moving higher after Russian President Vladimir Putin said Moscow should consider restricting exports of both commodities in retaliation for Western sanctions.
"Please take a look at some of the types of goods that we supply to the world market ... Maybe we should think about certain restrictions - uranium, titanium, nickel," Mr Putin told Prime Minister Mikhail Mishustin.
Yellowcake companies Deep Yellow, Boss Energy and Paladin Energy were the three biggest gainers in the ASX200 at midday, all climbing between 9.7 and 8.6 per cent, while Nickel Industries had gained 7.1 per cent and IGO had added 4.9 per cent.
Lithium companies were also building on Wednesday's gains after China's CATL suspended production at two major mines in Jiangxi Province.
Pilbara was up 5.4 per cent, Liontown had grown 4.7 per cent and Arcadium Lithium was 4.2 per cent higher.
Elsewhere in the mining sector, BHP had dropped 1.9 per cent while Fortescue was up 1.1 per cent and Rio Tinto had gained 0.8 per cent.
All of the big four banks were higher, with Westpac up 1.1 per cent, CBA adding 1.0 per cent and NAB and ANZ both growing 0.6 per cent.
The Australian dollar was buying 66.79 US cents, from 66.64 US cents at Wednesday's ASX close.
