The benchmark S&P/ASX200 index rose 73.8 points, or 0.89 per cent, to 8,374 on Tuesday, finishing 18 points above its previous closing high set on October 17.
Around 3pm the index also rose above 8,400 for the first time, climbing as high as 8,446.4 before dipping in the final hour of trading.
The broader All Ordinaries on Tuesday gained 74.8 points, or 0.87 per cent, to 8,629.2.
IG analyst Tony Sycamore said the rally was fuelled by optimism ahead of AI chipmaker Nvidia's earnings report on Thursday, with traders looking for a fifth consecutive quarterly earnings beat from what is now the world's second-largest company.
Mr Sycamore said after four weeks of consolidation, he saw little standing in the way of the ASX200 and a test of 8,600.
Capital.com analyst Kyle Rodda said it was an "unexpected mini-melt-up" for the domestic bourse, which on Tuesday was outperforming its overseas counterparts.
Mr Rodda said the outsized gain by the ASX200 suggested it was a local quirk, and there was no obvious impetus for such a powerful and broad-based move.
Traders did have the minutes from the Reserve Bank's November meeting to digest, but economists said the report didn't contain too much new information.
The minutes did lead NAB's economic team to push back their prediction for when rate cuts would begin until May instead of February. Head NAB economist Gareth Spence and his colleagues cited a stronger-than-expected domestic labour market as the reason for the delay.
All of the ASX's 11 sectors gained ground on Tuesday, with tech climbing the most, by 3.1 per cent, as Technology One soared 10.1 per cent to an all-time high of $29.45 after posting its full-year results.
The Brisbane-based business software solutions company said it had turned a $152.9 million profit in the year to September 30, up 18 per cent from a year ago and better than guidance set in May.
Chief execuitve Ed Chung said the company had a balance sheet of $278.7 million and no debt, leaving it in a strong position for inorganic growth in the future.
In health care, Sonic Healthcare rose 6.8 per cent to a three-month high of $27.99 as the global pathology company's chief executive told its annual meeting that revenue for the first four months of 2024/25 was 10 per cent higher than same time a year ago.
Three of the big four banks finished higher, with CBA rising 1.7 per cent to an all-time closing high of $155.61, Westpac growing 0.5 per cent to $33.39 and NAB climbing 1.0 per cent to $39.54.
In the heavyweight material sector, gains by goldminers slightly outweighed losses by the iron ore giants.
Fortescue dropped 1.1 per cent to $17.75, Rio Tinto fell 0.4 per cent to $115.70 and BHP dipped 0.1 per cent to $40.31, while Northern Star rose 4.0 per cent to $16.90 and Evolution added 3.4 per cent to $4.90.
In industrials, Close the Loop jumped 19.5 per cent to 24.5 cents after the electronics refurbishment company said it had received a tentative, nonbinding takeover offer by Adamantem Capital at 27 cents a share.
In currency, the Australian dollar was buying 65.08 US cents, from 64.64 US cents at Monday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Tuesday up 73.8 points, or 0.89 per cent, at 8,374.
* The broader All Ordinaries rose 74.8 points, or 0.87 per cent, to 8,629.2
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.08 US cents, from 64.64 US cents at Monday's ASX close
* 100.53 Japanese yen, from 99.83 Japanese yen
* 61.49 euro cents, from 61.31 euro cents
* 51.37 British pence, from 51.16 pence
* 110.53 NZ cents, from 110.33 NZ cents.
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