The local share market has rallied to hit an eight-day high to close above a key resistance level, shrugging off fears about the Middle East conflict following dovish remarks by Federal Reserve officials.
The benchmark S&P/ASX200 index on Tuesday climbed back above 7,000, rising 70.4 points, or 1.0 per cent, to 7,040.6.
The broader All Ordinaries gained 74 points, or 1.0 per cent, to 7,231.0.
The gains came after two Fed officials overnight made comments suggesting the US rate-hiking cycle could finally be at an end.
Federal Reserve vice chairman Philip Jefferson said in a speech the US central bank was in a position to "proceed carefully" following 525 points of rate hikes since early 2022, while Dallas Fed president Lorie Logan said the recent surge in Treasury yields could lessen the need for monetary tightening.
Closer to home, NAB's Monthly Business Survey on Tuesday showed conditions ticked down last month but remained above their historical average levels, pointing to continued resilience.
Importantly for markets, the survey indicated price growth eased during September, an important consideration for the Reserve Bank as it mulls one more rate hike this year that would no doubt pressure equities.
"Minimum wage impacts and movements in oil prices have caused some volatility in cost pressures recently but the September survey results suggest the easing trend seen earlier in the year may continue," NAB chief economist Alan Oster said.
Consumer sentiment upticked last month but was still at very low levels, a Westpac-Melbourne Institute poll of 1,200 adults conducted last week found.
"The consumer mood has improved slightly but optimism remains in extremely short supply," Westpac senior economist Matthew Hassan said.
Every ASX sector finished in the green, with utilities the biggest gainer, up 4.2 per cent as Origin Energy surged 5.5 per cent to a five-year high of $9.21 following the competition watchdog authorising its $18.7 billion acquisition by Brookfield and EIG Partners.
RBC Capital Markets analyst Gordon Ramsay said there was a still a risk the Foreign Investment Review Board rejected the deal or shareholders such as AustralianSuper and Perpetual torpedoed it as undervaluing Australia's largest energy retailer. Given the recent strength of the US dollar, the deal is worth about $A9.20 per Origin share.
The tech sector was also a big gainer on Tuesday, rising 3.0 per cent as Xero added 4.4 per cent and Life360 gained 4.6 per cent.
Weebit Nano rose 4.9 per cent to $2.98 after the semiconductor developer announced its Israel operations were unaffected by the bloody conflict unfolding in the country, with some employees working from home.
"Israel has a proud tradition of 'not a single day lost' and as a nation we make it a point to not allow these tough periods to impact our work, or delay milestones," CEO Coby Hanoch said.
The heavyweight mining sector rose 0.7 per cent, with BHP adding 0.3 per cent to $44.15 and Fortescue climbing 0.8 per cent to $20.83 while Rio Tinto dropped 0.9 per cent to $112.20.
All of the Big Four banks finished higher, with ANZ up 0.6 per cent to $25.57, Westpac adding 0.3 per cent to $21.48 and CBA and NAB both rising 0.7 per cent, at $100.70 and $29.15, respectively.
Like the ASX200, the Australian dollar was at an eight-day high, buying 64.12 US cents, from 63.55 US cents at Monday's ASX close.
ON THE ASX:
* The S&P/ASX200 index finished Tuesday 70.4 points higher at 7,040.6 a gain of 1.01 per cent
* The All Ordinaries rose 74 points, or 1.03 per cent, to 7,231.0
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 64.12 US cents, from 63.55 US cents at Monday's ASX close
* 95.34 Japanese yen, from 94.81 Japanese yen
* 60.69 Euro cents, from 60.21 Euro cents
* 52.42 British pence, from 52.08 British pence
* 106.51 NZ cents, from 106.46 NZ cents
