The benchmark S&P/ASX200 index on Thursday rose 91.9 points, or 1.19 per cent, to a nine-day high of 7,831.8, while the broader All Ordinaries added 93.1 points, or 1.17 per cent, to 8,079.2.
On Wall Street overnight, the S&P500 hit its 33rd record high of the year after a private US survey of service-sector activity fell to its lowest level since the COVID-19 pandemic.
A private US jobs survey by payroll processor ADP was also slightly weaker than expectations, and traders bet the data would allow the Federal Reserve to ease rates in September.
The market's implied odds of a rate cut by then rose to 73 per cent, from 69 per cent a day earlier, according to CME FedWatch.
Nine of the ASX's 11 sectors rose on Thursday, with tech and utilities the outliers.
Mining was the biggest gainer, rising 2.3 per cent.
Fortescue added 3.2 per cent to a two-week high of $22.62 while Rio Tinto and BHP both climbed 2.6 per cent to roughly one-month highs, at $124.27 and $44.77 respectively.
Goldminers also gained as the precious metal hit an almost two-week high of $US2,355 an ounce on the increased odds of a Fed rate cut.
Newmont added 3.2 per cent to a two-week high of $64.69, Evolution climbed 4.1 per cent to a similar high of $3.60, and Northern Star added 0.7 per cent to $12.86.
But West Africa Resources slumped 13.5 per cent to a two-month low of $1.375 after announcing a $150 million capital raising at a 13.8 per cent discount.
The funds will be used to develop WAF's second goldmine in the West African country of Burkina Faso.
In the energy sector, Santos rose 4.2 per cent to an eight-month high of $8 after Bloomberg News reported that state-owned Middle Eastern oil giants Saudi Aramco and Abu Dhabi National Oil Company were separately considering bids for Australia's second-largest gas company.
A Santos spokesman did not return an email seeking comment.
Elsewhere in the sector, Woodside rose 0.6 per cent, Ampol grew 1.1 per cent and Boss Energy dropped 2.9 per cent as the uranium producer said it was preparing to deliver its first shipment of yellowcake from its newly reopened Honeymoon mine in South Australia to European nuclear utilities.
In the financial sector, all of the big retail banks closed higher, with CBA rising 2.0 per cent to $127.86, ANZ adding 1.3 per cent to $28.51, and NAB and Westpac both climbing 0.9 per cent, to $35.77 and $27.35 respectively.
Magellan Financial Group rose 6.1 per cent to a more than two-month high of $9.07 after announcing its funds under management dipped slightly in June to $36.6 billion.
Back in the mining sector, Fenix rose 11.8 per cent to an almost three-year high of 38c after the Perth-based company announced it would reopen its Shine iron ore mine 295km east of Geraldton.
Fenix acquired the mine from Mount Gibson Iron in 2023.
In currency, the Australian dollar had climbed decisively to more than 67 US cents for the first time since early January.
The Aussie was buying 67.15 US cents, from 66.74 US cents at Wednesday's ASX close.
Looking forward, the US market will be closed overnight for the Fourth of July holiday while voters in the UK head to the polls.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Thursday up 91.9 points, or 1.19 per cent, at 7,831.8.
* The broader All Ordinaries gained 93.1 points, or 1.17 per cent, to 8,079.2.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 67.14 US cents, from 66.73 US cents at Wednesday's ASX close
* 108.35 Japanese yen, from 107.41 Japanese yen
* 62.24 euro cents, from 61.94 euro cents
* 52.68 British pence, from 52.60 pence
* 109.83 NZ cents, from 109.82 NZ cents.
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