At midday AEST on Thursday the benchmark S&P/ASX200 index was up 16.6 points, or 0.21 per cent, to 7,967.1, while the broader All Ordinaries had gained 15.9 points, or 0.19 per cent, to 8,172.9.
A readout overnight from the US Bureau of Labor Statistics revealed a great-than-expected weakness in the US labour market, with job vacancies the lowest since January 2021.
Moomoo analyst Jessica Amir said the report increased the odds the Federal Reserve would opt for an interest rate cut of 0.5 percentage points in two weeks, rather than a more regular 0.25 percentage point cut.
Ms Amir added that some investors were "nibbling into the stock dip" following the sell-off, apparently accustomed to the idea that the market would recover over time, just as it did following a similar plunge a month ago.
The ASX200 declined 1.9 per cent on Wednesday following a monthly report showing continued weakness in the US manufacturing sector.
Six of the ASX's 11 sectors were higher at midday and five were lower.
Energy was by far the worst performer, dropping 4.3 per cent as Woodside traded ex-dividend and Brent crude dropped to less than $US74 a barrel for the first time since December.
Woodside was down 6.8 per cent to $25, Santos had fallen 2.5 per cent to $6.895 and Beach Energy had retreated 3.7 per cent to $1.1175.
In the financial sector, Challenger had plunged 10.6 per cent to a four-month low of $6.26 after Apollo Global Management reduced its stake in the annuity provider from 20.1 per cent to 9.9 per cent.
All of the big four banks were higher, with ANZ and Westpac both up 1.7 per cent, NAB climbing 1.5 per cent and CBA adding 0.7 per cent.
In the heavyweight mining sector, BHP had grown 0.9 per cent and Rio Tinto had added 0.4 per cent while Fortescue dropped 1.0 per cent in what was shaping up to be its fifth straight losing day.
Coronado Global Resources had plunged 16.2 per cent to an almost three-year low of 91.75c after the coking coal producer lowered its production guidance, citing heavy rain at its Curragh mine in Queensland and required repairs to its overland conveyor.
The Australian dollar was buying 67.27 US cents, from 67.12 US cents at Wednesday's ASX close.
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