The Australian share market has rallied to a two-month high, after a softer-than-expected US inflation report raised hopes of less aggressive interest rate hikes from the Federal Reserve.
The benchmark S&P/ASX200 index finished 78.3 points, or 1.12 per cent higher, at 7071.
The broader All Ordinaries rose 86.7 points, or 1.2 per cent, to 7325.4.
The gains were led by the heavyweight mining and financial stocks, and bolstered by the healthcare sector.
Meanwhile, the Australian dollar was buying 70.87 US cents at 1620 AEST on Thursday, up from 69.66 US cents on Wednesday.