The Australian share market has gained ground after Federal Reserve chairman Jerome Powell failed to deliver a hawkish surprise during a closely watched speech at a summit of central bankers over the weekend.
The benchmark S&P/ASX200 index on Monday finished up 44.6 points, or 0.63 per cent, to 7,159.8, while the broader all Ordinaries gained 33.3 points, or 0.45 per cent, to 7,365.9.
Speaking at the same Jackson Hole Symposium event where a year ago he tanked global markets by declaring it was necessary to enact painful interest rate hikes, the Fed chairman this time emphasised the need to tread carefully in deciding whether to raise rates further.
"Given how far we have come, at upcoming meetings we are in a position to proceed carefully as we assess the incoming data and the evolving outlook and risks," Mr Powell said.
While doing too little could allow above-average inflation to become entrenched, doing too much could result in unnecessary harm to the economy, he added.
AMP chief economist Shane Oliver said Mr Powell did little to alter expectations the Fed would leave rates on hold next month.
Markets have priced in just a one-in-five chance of a rate hike at the Fed's September 20 meeting, the CME FedWatch Tool shows.
Closer to home, the Australian Bureau of Statistics on Monday reported a better-than-expected jump in retail sales figures last month, with turnover up 0.5 per cent in July, partially reversing a 0.8 per cent fall in June.
Cafes, restaurants and takeaway food sales grew considerably, which the ABS linked to school holidays and the FIFA Women's World Cup.
Sean Langcake, head of macroeconomic forecasting for Oxford Economics Australia, said despite the jump, retail spending momentum remained "very weak", with sales little changed from nine months ago despite price inflation since that time.
"The end of the interest rate hiking cycle may boost consumer confidence, but it will do little to alleviate household budget pressures," he said.
St George senior economist Pat Bustamante said the retail trade data, coupled with recent softer-than-expected jobs data, was consistent with the Reserve Bank remaining on an "extended pause" on rate hikes.
Fortescue Metals headlined the ASX's company-specific news on Monday, slumping 5.1 per cent to a three-month low of $19.87 as the world's fourth-largest iron ore exporter reported a 23 per cent drop in net profit and the shock departure of another senior manager.
Chief executive Fiona Hicks had only joined Fortescue in late February and is the 10th senior executive to leave FMG in the past three years. Fortescue called her departure "both friendly and mutual".
Elsewhere in the sector, BHP rose 1.2 per cent to $43.55, Rio Tinto added 0.7 per cent to $108.68 and South32 dropped 1.4 per cent to $3.43.
All of the Big Four banks were higher, with ANZ up 1.0 per cent to $24.58, NAB climbing 1.3 per cent to $2826, CBA growing 1.2 per cent to $100.78 and Westpac finishing 0.3 per cent higher at $21.38.
In tech, Appen plunged 32.1 per cent to an eight-year low of $1.52 after the artificial intelligence dataset company reported its turnaround had not yet been successful, with its full-year net loss widening to $US34.2 million, from $US3.8 million the year prior.
Despite the surging interest in generative AI platforms like ChatGPT, Appen hasn't been able to cash in, with revenue falling 24 per cent to $US138.9 million.
The Australian dollar was buying 64.09 US cents, from 64.23 US cents on Friday.
ON THE ASX:
* The S&P/ASX200 index finished Monday up 44.6 points, or 0.63 per cent, at 7,159.8.
* The All Ordinaries added 33.3 points, or 0.45 per cent, to 7,365.9.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 64.09 US cents, from 64.23 US cents at Friday's ASX close
* 93.86 Japanese yen, from 93.75 Japanese yen
* 59.26 Euro cents, from 59.56 Euro cents
* 50.93 British pence, from 51.04 pence
* 108.63 NZ cents, from 108.63 NZ cents.
