The local share market has gained ground for a seventh straight day as dovish Reserve Bank minutes indicated that the central bank's last decision to hike rates was a close call.
The benchmark S&P/ASX200 index on Tuesday finished up 62.9 points, or 0.86 per cent, to 7,357.8, its highest closing level since April 20.
The broader All Ordinaries gained 59.3 points, or 0.79 per cent, at 7,548.5.
The ASX200 was already in the green but jumped 0.2 per cent in the space of two minutes after the release of the more dovish than expected minutes from the RBA's June 6 meeting, where the board somewhat surprised markets by raising the cash rate by another quarter of a percentage point.
The minutes disclosed the board had considered some of the downside risks of inflation and judged that the arguments between a rate hike and a rate pause were "finely balanced" before ultimately opting to hike.
"As is usually the case with central bank communications, investors can see or hear what they want," said City Index analyst Matt Simpson, who thought that overall the threat of more rate hikes was apparent despite the phrases the market had latched onto.
Indeed, after the release of the minutes Westpac, NAB and ANZ all reiterated their predictions that the central bank would raise rates again in July, while CBA put the odds at 50/50.
But the local currency plunged immediately following the release of the minutes, dropping by as much as 0.8 per cent to a five-day low of under 68 US cents.
Ten of the ASX's 11 sectors finished higher on Tuesday, with energy the biggest gainer, climbing 1.9 per cent.
Woodside rose 2.2 per cent to $36.31 after the independent energy giant decided to proceed with a $US7.2 billion ($A10.6 billion) oil field development in the Gulf of Mexico, while Santos had advanced 2.3 per cent and Whitehaven Coal added 0.6 per cent.
The property sector, which tends to be especially sensitive to interest rate hikes, gained 1.3 cent amid the hopes the RBA might be near an end to its rate-hiking cycle.
Office tower owner Dexus advanced 1.1 per cent, Westfield owner Scentre Group rose 1.5 per cent and developer Mirvac gained 1.8 per cent.
In the heavyweight mining sector, there were gains for the iron ore giants as China's central bank cut two more lending rates in a bid to kick-start its sputtering economy.
BHP gained 1.3 per cent to $46.72, Rio Tinto added 0.7 per cent to $117.40, and Fortescue climbed 0.3 per cent to $22.40.
All of the Big Four banks were higher, with CBA up 1.1 per cent to $101.62, NAB adding 1.8 per cent to $26.50, Westpac advancing 1.3 per cent to $21.43 and ANZ finishing 0.8 per cent higher at $23.80.
Elsewhere, Southern Cross Media soared 20.4 per cent to a three-month high of 91.5c after KIIS FM owner ARN Media announced it had spent $38.3 million acquiring a 14.8 per cent stake in its radio rival.
ARN Media said it acquired the stake as a "strategic equity investment in a sector that it knows well" and representing attractive value for ARN Media shareholders.
The Broadcasting Services Act would prohibit ARN from acquiring much more in Southern Cross Media, the Triple M station owner noted.
The Aussie was buying 68.10 US cents, from 68.54 US cents at Monday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Tuesday up 62.9 points, or 0.86 per cent, at 7,357.8
* The broader All Ordinaries gained 59.3 points, or 0.79 per cent, to 7,548.5
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 68.10 US cents, from 68.54 US cents at Tuesday's ASX close
* 96.53 Japanese yen, from 97.10 Japanese yen
* 62.23 Euro cents, from 62.71 Euro cents
* 53.19 British pence, from 53.47 British pence
* 109.98 NZ cents, from 110.25 NZ cents
