The local share market rose 1.4 per cent to an eight-week high after US inflation data suggested the rate-hiking cycle in the world's largest economy is over.
The Australian share market has posted its best performance in four months after US inflation data came in weaker than expected, supporting the view the Federal Reserve's aggressive rate hiking cycle is over.
The benchmark S&P/ASX200 index on Wednesday finished up 99.2 points, or 1.42 per cent, to an eight-week high of 7,105.9, while the broader All Ordinaries gained 109.6 points, or 1.52 per cent, to 7,316.7.
US inflation came in slightly softer than expected, with core consumer prices rising 4.0 per cent in the year to October, from 4.1 per cent from in September.
GSFM investment strategist Stephen Miller said the readout suggested the US rate-hiking cycle was in abeyance, probably indefinitely.
While there was still one more monthly consumer price readout before the Federal Reserve meets in December, it was difficult to see a number that would cause the Fed to enact a rate hike at its final meeting for 2023, Mr Miller said.
Closer to home, the Australian Bureau of Statistics on Wednesday reported wages rose 1.3 per cent in the September - the highest quarterly growth in the 26-year history of the wage price index.
But ANZ economists Catherine Birch and Madeline Dunk said the record growth was widely expected and given that it was partly driven by temporary factors, the data would not concern the Reserve Bank as much as might be expected on face value.
Every sector except energy finished higher, with property the biggest gainer, rising 4.8 per cent as GPT Group added 6.9 per cent and Stockland lifted 6.1 per cent.
The heavyweight mining sector rose 2.4 per cent, with BHP up 1.8 per cent to $46.84, Fortescue rising 3.5 per cent to $25.18 and Rio Tinto advancing 2.6 per cent to $125.61.
The Big Four banks were mostly higher, with ANZ up 1.0 per cent to $25.01, Westpac advancing 0.7 per cent to $21.15 and NAB gaining 0.4 per cent to $28.08.
CBA was the outlier, edging 0.1 per cent lower at $102.15.
Aristocrat Leisure dropped 1.0 per cent to $39.48 as the poker machine manufacturer announced it made $1.3 billion in profit for the 12 months to September 30, up 13 per cent from the previous year in constant currency terms.
"I'm proud of the high-quality result that we are announcing today," chief executive and managing director Trevor Croker said.
Flight Centre dropped 3.4 per cent to $18.78 as the travel agency said it expected travellers to benefit from improved airline capacity and competition bringing down airfares. But it remains concerned about an ongoing lack of seats on planes between Australia and Europe.
"We don't know why, but I know in the travel industry the Transport Minister (Catherine) King is now known as the 'minister for higher airfares,'" chief executive Graham "Skroo" Turner told the company's annual general meeting.
In small caps, Atlantic Lithium soared 46.8 per cent to a five-month high of 56.5c after the Africa-focused lithium explorer said it had rejected a tentative takeover offer from its major shareholder, Assore International, at 63c a share.
The Australian dollar had hit a 10-day high against its faltering US counterpart, buying 65 US cents, from 63.60 US cents at Tuesday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index on Wednesday finished 99.2 points higher at 7,105.9, a gain of 1.42 per cent.
* The broader All Ordinaries rose 109.6 points, or 1.52 per cent, at 7,316.7.
One Australian dollar buys:
* 65.00 US cents, from 63.60 US cents at Tuesday's ASX close
* 97.95 Japanese yen, from 96.61 Japanese yen
* 59.79 Euro cents, from 59.55 Euro cents
* 52.06 British pence, from 51.89 pence
* 108.94 NZ cents, from 108.46 NZ cents.