Bullish sentiment from Wall Street has finally rubbed off on the local bourse, which posted gains across the board ahead of important testimony by Fed chairman Jerome Powell.
The benchmark S&P/ASX200 index on Tuesday rose 66.5 points, or 0.86 per cent, to a three-day high of 7,829.7, while the broader All Ordinaries added 63 points, or 0.79 per cent, to 8,075.2.
Overnight the S&P500 edged higher to reach its 35th record high of 2024 ahead of Mr Powell's midnight AEST testimony before the Senate Banking Committee, where he is expected to urge patience on rate cuts.
Domestically a trio of business and consumer surveys indicated Australia's economy has kept slowing down, likely reducing pressure on the Reserve Bank to raise rates.
NAB's monthly business survey found business conditions continued to ease in June, while the ANZ-Roy Morgan and Westpac-Melbourne Institute surveys showed further declines in consumer confidence.
"Sentiment remains stuck in the same deeply pessimistic range that has dominated for two years now," Westpac senior economist Matthew Hassan said.
"Consumers are becoming more uneasy about the economy, especially over the next year."
Every sector of the ASX finished higher at midday, with telecommunications and financials the biggest gainers, rising 1.4 per cent.
Telstra climbed 2.2 per cent to a nearly three-month high of $3.73 after announcing it would raise most mobile prices, while REA Group also rose 2.2 per cent to a two-week high of $196.86.
In the financial sector, all the big retail banks finished in the green.
CBA rose 1.8 per cent to $18.69, NAB advanced 1.4 per cent to $35.84 and Westpac and ANZ both added 2.0 per cent, to $27.68 and $29.29. ANZ rose as it announced its acquisition of Suncorp's banking arm would complete on July 31, with Suncorp adding 2.1 per cent to $16.76.
Insignia Financial rose 13.6 per cent in late trading to a three-month high of $2.50 after the Australian Financial Review reported it was a M&A target from Brookfield private equity and had called in Citi Australia's bankers.
But in a letter to the ASX, Insignia seemed to deny this, writing, "Citi has not been engaged to field any offers and the company is not aware of any offer".
Elsewhere in the sector Zip Co climbed 4.3 per cent to a more than two-year high of $1.82, having risen by nearly a quarter this month.
In the heavyweight mining sector, BHP and Rio Tinto both rose 0.6 per cent, to $43.74 and $120.60, respectively, while Fortescue added 0.2 per cent to $21.86.
In industrials, Droneshield rose 7.0 per cent to a fresh all-time high of $2.15. Its shares have risen nearly sixfold this year as the war in Ukraine has hammered home how modern conflicts will be increasingly fought via drones.
Bapcor dipped 0.2 per cent to $5.06 after the Autobarn owner announced it was rejecting a $1.8 billion buyout offer from Bain Capital.
The $5.40-per-share proposal doesn't represent fair value for Bapcor and isn't in the best interest of shareholders, the company said.
It appointed former 7-Eleven Australia boss Angus McKay as its next CEO, starting August 22.
The Australian dollar was buying 67.46 US cents, from 67.43 US cents at Monday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Tuesday up 66.5 points, or 0.86 per cent, at 7,829.7.
* The broader All Ordinaries rose 63 points, or 0.79 per cent, to 8,075.2.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 67.46 US cents, from 67.43 US cents at Friday's ASX close
* 108.45 Japanese yen, from 108.43 Japanese yen
* 62.30 euro cents, from 62.30 euro cents
* 52.66 British pence, from 52.66 pence
* 110.14 NZ cents, from 109.82 NZ cents.
