Strong gains for Commonwealth Bank have helped boost the local share market to its best level in a week.
After a lacklustre morning, the benchmark S&P/ASX200 index rose steadily on Wednesday afternoon to finish about the highs of the day, up 26.9 points, or 0.37 per cent, to 7,338.0.
The All Ordinaries gained 23.7 points, or 0.32 per cent, to 7,543.4.
The market hadn't moved by more than a quarter of a percentage point since last Thursday, with traders possibly waiting for the Thursday night (AEST) release of US inflation data for July to take a position.
In Beijing, the National Bureau of Statistics reported Wednesday that China's economy fell into deflation last month, with consumer prices dropping 0.3 per cent - their first decline since early 2021.
Commonwealth Bank had its best day since October, finishing up 2.6 per cent to $104.85 after Australia's biggest bank and second-biggest company reported a higher-than-expected full-year profit of $10.2 billion.
ANZ rose 0.8 per cent to $25.43, Westpac added 1.7 per cent to $22.07 and NAB added 2.2 per cent to $28.64.
Bendigo and Adelaide Bank gained 0.8 per cent to $9.15 after prudential regulator APRA lifted more stringent capital requirements it imposed on the regional lender in 2020 after a previous accounting error impacted its compliance.
The health of the Australian banking sector contrasted with the situation in the United States, where there was an overnight sell-off on Wall Street after Moody's cut the credit ratings of 10 small and mid-sized banks and placed six banking giants on review for possible downgrades.
Overall, financial was the best performing ASX sector on Wednesday, rising 1.2 per cent, although insurance companies were down as Suncorp warned of a challenging operating environment ahead while reporting a 69 per cent jump in full-year profit to $1.15 billion.
Suncorp shares dropped 1.5 per cent to $13.54 while QBE dipped 1.8 per cent to $15.60 and IAG slid 0.5 per cent to $5.95.
The health care sector dipped 0.9 per cent, with CSL down similarly and ResMed sliding another 4.6 per cent following last week's earning result.
The heavyweight mining sector rose 0.2 per cent with BHP adding 0.4 per cent to $45.50, Fortescue up 0.2 per cent at $21.18 and Rio Tinto down 0.5 per cent at $112.85.
InvoCare rose 5.9 per cent to $12.48 after the funeral home operator agreed to be acquired by TPG Capital for $12.70 a share, down from TPG's first tentative approach of $13 a share.
Beach Energy finished down 0.3 per cent to $1.66 as the oil and gas producer announced CEO Morne Engelbrecht had abruptly left his role after little more than a year on the job.
No reason was given but the Adelaide-based company has been hit by multiple operational issues in recent months and there was speculation Mr Engelbrecht had been forced out by Beach's biggest shareholder, Seven Group, whose CEO Ryan Stokes rejoined Beach's board two weeks ago.
Mr Engelbrecht will be replaced in February by Santos executive Brett Woods.
The Australian dollar was buying 65.69 US cents, from 65.23 US cents at Friday's ASX close.
Looking forward, AGL Energy, Boral, Downer EDI, QBE, Avita Medical, AMP and Arena REIT will all report earnings on Thursday.
ON THE ASX:
* The S&P/ASX200 index finished Wednesday up 26.9 points, or 0.37 per cent, at 7,338.0.
* The All Ordinaries gained 23.7 points, or 0.32 per cent, to 7,543.4.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 65.69 US cents, from 65.23 US cents at Tuesday's ASX close
* 93.98 Japanese yen, from 93.30 Japanese yen
* 59.84 Euro cents, from 59.44 Euro cents
* 51.42 British pence, from 51.19 pence
* 107.83 NZ cents, from 107.63 NZ cents.
