The benchmark S&P/ASX200 index on Monday finished up 43.7 points, or 0.6 per cent, to 7,294.9 - its best level since May 1.
The broader All Ordinaries gained 38 points, or 0.51 per cent, to 7,489.2.
It's the longest winning streak for the ASX since eight sessions of gains from March 27 to April 5.
"The stock market's rally is heating up as FOMO chasers may have rushed to catch up with bulls," CMC Markets APAC & Canada Tina Teng wrote in a note, referring to "fear of missing out".
Artificial intelligence, a US pause on rate hikes and the possibility of the People's Bank of China this week cutting its benchmark loan prime rates as a monetary stimulus measure is also fuelling sentiment, Ms Teng said.
Every sector of the ASX except energy and materials gained ground on Monday, with health care the biggest winner, climbing 1.9 per cent as CSL recouped some of its sharp losses from last week.
The blood products giant was up 2.4 per cent to $284.44 as bargain hunters swooped.
Consumer staples climbed 1.6 per cent with Woolworths finishing up 2.4 per cent to $39.54 and Coles and Endeavour Group both adding 1.3 per cent.
All of the Big Four banks finished higher, led by ANZ, which advanced 1.5 per cent to $23.62.
CBA and Westpac both added 1.2 per cent, to $100.51 and $21.15, respectively, while NAB added 0.8 per cent to $26.06.
Insurance companies also had a good day, with Suncorp climbing two per cent and IAG and QBE finishing up 1.1 per cent.
Pointsbet soared 21.6 per cent to a more than one-month high of $1.66 after the betting company said it would engage with DraftKings on a surprise $US195 million ($A284m) offer the US sportsbetting giant lobbed on Friday for Pointsbets' US business.
Pointsbet had been planning on selling off its money-losing US operations to Fanatics Betting and Gaming for $US150m ($A222m), but is now prepared to offer an inside look at its financials to DraftKings to facilitate a due diligence process, the company said.
Abacus Property Group gained 5.8 per cent to $2.73 after successfully completing a $225m equity raising to spin off its self-storage property assets into an ASX-listed real estate equity trust to be known as Abacus Storage King.
The heavyweight mining sector finished down 0.6 per cent, with BHP dipping 0.7 per cent to $46.10, Fortescue retreating 0.8 per cent to $22.33 and Rio Tinto down 1.2 per cent to $116.63.
Lithium developer Lake Resources plunged 20 per cent to a two-year low of 38c announcing it would take a two-stage approach to construct its flagship Kachi lithium mine in Argentina that would not see it producing battery-grade lithium carbonate until 2027.
The Australian dollar was buying 68.54 US cents, from 68.83 US cents at Friday's ASX close.
Looking forward, Wall Street markets will be closed overnight for the Juneteenth holiday.
Minutes from the Reserve Bank's last meeting will be released on Tuesday. Overseas, US Federal Reserve chairman Jerome Powell will give his semi-annual testimony before Congress early on Thursday and Friday, Australian time.
In the UK, the Bank of England is widely expected to raise interest rates on Thursday.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Monday up 43.7 points, or 0.6 per cent, at 7,294.9.
* The broader All Ordinaries gained 38 points, or 0.51 per cent, to 7,489.2.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 68.54 US cents, from 68.83 US cents at Friday's ASX close
* 97.10 Japanese yen, from 97.23 Japanese yen
* 62.71 Euro cents, from 62.89 Euro cents
* 53.47 British pence, from 53.80 British pence
* 110.25 NZ cents, from 110.51 NZ cents
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