At noon AEST, on Thursday, the benchmark S&P/ASX200 index was up 79.8 points, or 1.03 per cent, to 7,819.8, while the broader All Ordinaries was up 81.2 points, or 1.02 per cent, to 8,066.8.
While the gains were respectable, they only put the ASX200 back where it was eight days ago.
On Wall Street overnight, the S&P500 hit its 33rd record high of the year after a private US survey of service-sector activity, known as ISM Services PMI, fell to its lowest level since the COVID-19 pandemic.
A private US jobs survey by payroll processor ADP was also weaker than expectations.
Traders bet the data would allow the Federal Reserve to ease rates in September, with the market's implied odds of a rate cut by then rising to 74 per cent, from 69 per cent a day earlier.
Minutes from the Fed's June 11 and 12 meeting were also released overnight and seemed dovish, with members noting the "modest further progress" towards meeting inflation targets.
Every sector of the ASX, except utilities, was higher at midday, with mining the biggest winner, up 2.3 per cent.
BHP had climbed 2.6 per cent, Fortescue had added 3.5 per cent and Rio Tinto had risen 2.5 per cent.
Goldminers were ascendant as the precious hit a nearly two-week high of $US2,359 an ounce on the increased odds of a Fed rate cut.
Newmont had added 3.3 per cent, Evolution had climbed 5.1 per cent and Northern Star grew 1.4 per cent, but West Africa Resources had slumped 13.1 per cent after announcing a $150 million capital raising at a 13.8 per cent discount.
In the energy sector, Santos had gained 4.2 per cent after Bloomberg News reported that state-owned Middle Eastern oil giants Saudi Aramco and Abu Dhabi National Oil Company were separately considering bids for Australia's second-largest gas company.
A Santos spokesman did not return an email seeking comment.
Elsewhere in the sector, Woodside was up 1.1 per cent, Ampol had grown 1.2 per cent and Boss Energy was down one per cent as the uranium producer said it was preparing to deliver its first shipment of yellowcake from its Honeymoon mine in South Australia to European nuclear utilities.
In the financial sector, all of the big retail banks were higher, with CBA up 1.2 per cent, ANZ adding 1.1 per cent, NAB climbing 0.8 per cent and Westpac rising 0.4 per cent.
Magellan Financial Group had climbed 6.3 per cent to a more than two-month high of $9.09 after announcing its funds under management dipped slightly in June, to $36.6 billion.
Back in the mining sector, Fenix rose 14 per cent to a nearly three-year high of 38.75c after the Perth-based company announced it would reopen the Shine open pit iron ore mine 295km east of Geraldton that it acquired from Mount Gibson Iron last year.
In currency, the Australian dollar had climbed decisively over 67 US cents for the first time since early January.
At midday the Aussie was buying 67.16 US cents, from 66.74 US cents at Wednesday's ASX close.
3°C