The benchmark S&P/ASX200 index closed on Thursday up 50 points, or 0.71 per cent, to 7048.1, while the broader All Ordinaries was up 49.6 points, or 0.68 per cent, to 7291.9.
The gains followed a positive lead from US stock markets and China stepping up its economic stimulus with 1 trillion yuan ($A209 billion) of funding to boost investment and consumption, said Julia Lee, SPDR ETF equity strategist with State Street Global Advisors in Sydney.
"Markets have been debating the tradeoff between higher inflation, slowing growth and the central bank policy response for much of this year. The next two days will be crucial in setting expectations," Ms Lee told AAP.
That's because US Federal Reserve chairman Jerome Powell is scheduled to speak on the economic outlook later this week at a gathering of economists and central bankers in Jackson Hole, Wyoming.
The forum has been used in the past by Fed chairs for making key policy announcements, Ms Lee noted, and the market will be closely watching for clues on the aggressiveness of future rate hikes.
Every sector of the ASX was higher on Thursday except for utilities and consumer staples, with the latter sliding after Woolworths warned of weak sales and a "volatile and challenging" trading environment as the supermarket giant reported earnings.
WOW shares slid 3.2 per cent to $36.20, Coles was down 1.1 per cent to $17.65 and alcohol retailer Endeavour Group dropped 2.6 per cent to $7.24.
Energy was once again a strong performer, up 1.6 per cent as Brent crude hit a four-week high of $US102 on potential OPEC+ supply cuts.
Woodside rose 2.0 per cent to a two-year high of $35.51, while Beach added 3.2 per cent and Santos gained 1.3 per cent.
But Whitehaven Coal dropped 1.4 per cent to $7.79 as the coalminer, whose shares have been on a tear this year, reported a record $2 billion profit for 12 months to June 30.
Uranium stocks outperformed on word that Japan would explore developing small nuclear reactors for energy, Ms Lee noted. Paladin Energy gained 11.6 per cent and Deep Yellow added 18.3 per cent.
In the heavyweight mining sector, BHP gained 0.6 per cent to $42.19, Fortescue Metals added 0.1 per cent to $19.14 and Rio Tinto edged 0.2 per cent higher to $97.26.
The big banks were all higher, with Westpac and NAB both up by one per cent, to $21.59 and $30.30 respectively. CBA rose by 0.6 per cent to $97.82 while ANZ added 0.2 per cent to $22.86.
Qantas was up 7.1 per cent to $4.86 as the flag carrier announced a surprise $400 million share buyback, its first return to shareholders since 2019, as travel rebounds.
"Getting through to the other side has obviously been tough," Qantas CEO Alan Joyce said.
Nine Entertainment was up 9.0 per cent to $2.18 after the media company said it would buy back up to 10 per cent of its shares after its full-year net profit grew 35 per cent to $373.5 million.
The Sydney Morning Herald and The Age publisher said digital subscription and licensing revenue was up 66 per cent for the year, more than offsetting its six per cent decline in revenue from print.
Other companies that rose on earnings reports were South32 (1.0 per cent); Regis Resources (4.4 per cent); Qube Holdings (8.5 per cent); Charter Hall Group (6.5 per cent); Karoon Energy (8.4 per cent); Judo Capital (6.6 per cent); IDP Education (7.5 per cent); Ardent Leisure (7.1 per cent); Insignia Financial (11.4 per cent); Cromwell Property Group (0.6 per cent); and Servcorp (2.3 per cent).
On the flip side, falling on earnings reports were Zip (2.1 per cent); Appen (1.2 per cent); Eagers Automotive (1.1 per cent); City Chic Collective (19.3 per cent); Mount Gibson Iron (5.8 per cent); and Skycity Entertainment (1.9 per cent).
Perpetual fell 9.4 per cent and Pendal gained 8.4 per cent as the former agreed to acquire the latter in a $2.5 billion merger that'll create what the companies are calling Australia's pre-eminent global asset manager, with $201 billion in assets under management
The Australian dollar meanwhile was buying 69.67 US cents, from 69.06 US cents at Wednesday's close.
ON THE ASX:
* The benchmark S&P/ASX200 index on Thursday finished up 50 points, or 0.71 per cent, at 7048.1.
* The broader All Ordinaries gained 49.6 points, or 0.68 per cent, to 7291.9.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 69.76 US cents, from 69.13 US cents at Wednesday's close
* 95.26 Japanese yen, from 94.49 yen
* 69.64 Euro cents, from 69.46 cents
* 58.84 British pence, from 58.46 pence
* 111.93 NZ cents, from 111.59 cents.
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