Information technology and financial stocks have helped break a three-day losing streak for the Australian share market but concerns about China's mineral demand continue to weigh on investors.
The benchmark S&P/ASX200 index closed 30.6 points higher, or 0.37 per cent, on Thursday at 8224, while the broader All Ordinaries edged 29 points higher, or 0.34 per cent per cent, to 8479.9.
The performance broadly followed Wall Street as bets on a US Federal Reserve December rate cut narrowed on the back of an as-expected US inflation print.
The information technology sector led the ASX200 gains, surging 1.8 per cent on the back of strong interim results from accounting software company Xero, which boosted its six-month earnings by more than half.
Most sectors finished higher while materials, energy stocks, consumer staples and health care stocks finished in the red.
The big four banks rebounded after a weak Wednesday to lead a 1.4 per cent rally in the financials sector, which accounts for almost a third of the index.
Insurance giants Insurance Australia Group, QBE and Suncorp also lifted, gaining 1.9 per cent, 1.7 per cent and 1.0 per cent respectively.
Miners weighed heavily on the index, with BHP, Fortescue and South32 giving up 1.3 per cent, 1.9 per cent and 1.4 per cent respectively, as potential Trump tariffs and ongoing economic headwinds in China weighed on demand expectations for the world's second-largest economy.
Rio Tinto bucked the trend, edging 0.23 per cent higher despite iron ore futures sinking below $US100 per tonne.
Some investors were likely hedging a bet on a rebound in miners and minerals with exposure to banks and other financial stocks, Pepperstone chief market strategist Chris Weston said.
"The banks are key here," Mr Weston told AAP.
"If you want that exposure to minerals then you want to get that value play that is the banks and also the income that comes through that."
Australian unemployment for October held steady for a third month at 4.1 per cent, in line with expectations despite a 0.1 per cent, 16,000 increase in employment, which was softer than expected.
IG Markets Australia senior markets strategist Tony Sycamore called it a "goldilocks" result.
"It's not too hot, not too cold," Mr Sycamore told AAP.
"What it does help the Reserve Bank of Australia do is to really maintain its focus on that inflation rate - which it still finds too hard - to keep the policy settings in restrictive territory, and know that the labour market is holding together reasonably well."
ANZ economists expect the first RBA rate cut to be in February 2025.
The Australian dollar has continued to tumble and was buying 64.62 US cents, down from 65.23 US cents at Wednesday's ASX close.
Still with central banking, US Federal Reserve Chairman Jerome Powell will take part in a panel discussion in Dallas on Friday morning after leading PPI inflation figures are released overnight.
Analysts are expecting further momentum in tech stocks as all eyes look to chip titan Nvidia's earnings announcement on Tuesday.
Looking ahead
ON THE ASX:
* The benchmark S&P/ASX200 index finished Thursday up 30.6 points, or 0.37 per cent, at 8224
* The broader All Ordinaries lifted 29 points, or 0.34 per cent, to 8479.9
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 64.62 US cents, from 65.23 US cents at Wednesday's ASX close
* 100.83 Japanese yen, from 101.22 Japanese yen
* 61.29 euro cents, from 61.55 euro cents
* 50.94 British pence, from 51.26 pence
* 110.28 NZ cents, from 110.22 NZ cents.
