The ASX200 closed up 0.3 per cent and finished above 7,000 for the first time since mid-October.
The local share market has finished above a key level for the first time since falling below it three weeks ago as bond yields continue to fall.
The benchmark S&P/ASX200 index on Thursday rose 19.5 points, or 0.28 per cent, to 7,034.1, its first close above 7,000 since October 18.
The broader All Ordinaries gained 16.7 points, or 0.23 per cent, to 7,215.1.
In the US, 10-year Treasury yields slid below 4.5 per cent for the first time since late September following a $US40 billion auction in 10-year notes.
Australian government bond yields similarly declined. The drop in bond from yields from their 16-year highs set last month has relieved pressure on equities, contributing to the recent rebound.
Eight of the ASX's 11 sectors finished higher, but tech dropped 4.8 per cent as Xero plunged on a earnings report the market found disappointing.
The Kiwi cloud accounting platform fell 12.4 per cent to a nearly six-month low of $100.47 after announcing its revenue grew 21 per cent to $NZ800 million in the first half.
CEO Sukhinder Singh Cassidy said the result demonstrated good momentum but RBC Capital Markets analyst Garry Sherriff described it as mixed - a miss on subscribers, revenue and earnings while upbeat on pricing and free cash flow.
The Big Four banks were also split, with two up and two down.
CBA climbed 1.4 per cent to $102.11 and ANZ added 1.0 per cent to $25.81, while Westpac dropped 2.1 per cent $21.19 as it traded ex-dividend and NAB fell 0.8 per cent to $28.94 as it posted full-year results.
NAB, Australia's most business-focused major bank reported cash earnings of $7.7 billion for the 2023 fiscal year, up 8.8 per cent from the year before.
Its annual statutory net profit rose 7.6 per cent to $7.4 billion.
In the heavyweight mining sector, BHP rose 0.6 per cent to $44.95, Fortescue added 1.5 per cent to $23.45 and Rio Tinto gained 1.1 per cent to $120.12.
Nine Entertainment rose 0.3 per cent to $1.92 as chief executive Mike Sneesby told the media company's annual general meeting that costs across its television business would be down slightly in 2024.
Myer fell 1.9 per cent to 50.5c after the department store chain said sales for the first quarter were down 0.9 per cent on the previous year but have improved in the past seven weeks.
"It is clear broader macroeconomic factors have had an impact on the wider retail environment," outgoing CEO John King told shareholders at the company's annual general meeting.
Star Entertainment Group was flat at 57c as chief executive Robbie Cooke told its annual general meeting that its new leadership was dedicated to returning the company to solid ground after lax controls had led to its casinos being used for money laundering and other criminal activity.
"It's challenging, I feel the pain of shareholders every day. I'm working seven days a week, 18 hours a day to resolve it. But this is not a quick fix," Mr Cooke said.
The Australian dollar was buying 64.12 US cents, from 64.30 US cents at Wednesday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Thursday 19.5 points higher, or 0.28 per cent, at 7,014.9.
* The broader All Ordinaries gained 16.7 points, or 0.23 per cent, at 7,215.1.
One Australian dollar buys:
* 64.17 US cents, from 64.30 US cents at Wednesday's ASX close
* 96.82 Japanese yen, from 96.89 Japanese yen
* 59.94 Euro cents, from 60.18 Euro cents
* 52.23 British pence, from 52.38 pence
* 108.16 NZ cents, from 108.41 NZ cents.