Meanwhile, the broader All Ordinaries saw an equally impressive gain, rising 101.9 points, or 1.28%, to settle at 8,076.9.

According to Capital.com analyst Kyle Rodda, market activity is being influenced as much by tactical investment positions as by underlying fundamentals. "With the end-of-month and end-of-quarter adjustments in play, discerning the exact driver behind this rally is tricky," Rodda noted.

Despite a quiet evening in terms of major macroeconomic data releases, U.S. chip giant Nvidia experienced another decline, totaling a 13% drop over three days.

Australia’s domestic sentiment received a slight boost. A Westpac-Melbourne Institute survey indicated a minor rise in consumer confidence, but concerns about inflation and interest rates remain prevalent.

"Although there’s a slight improvement, sentiment is still below the levels seen in March, reflecting deep-seated pessimism," stated Westpac senior economist Matthew Hassan.

The forthcoming release of May's consumer price index by the Australian Bureau of Statistics is expected to shed more light on the future trajectory of interest rates.

Sector-wise, the entire ASX rallied, spearheaded by a strong performance in the energy sector. Energy stocks jumped 2.2% on the back of Brent crude prices soaring to a near two-month peak, prompted by escalating tensions between Israel and Lebanon. Leading energy companies like Woodside soared 3.7% to $27.96, Santos advanced 1.7% to $7.63, and Ampol gained 1.9% to $32.83.

However, the day wasn’t entirely positive for all resource-dependent stocks. Uranium company Paladin Energy plummeted 5.1% to $12.56 after announcing a $1.2 billion acquisition of Fission Uranium, marking a 26% premium over the latter's recent share price.

The mining sector, a heavyweight component of the ASX, recorded a robust 1.8% surge. Industry behemoths BHP, Rio Tinto, and Fortescue posted gains of 2.1%, 2.1%, and 1.9%, respectively. Gold stocks presented a mixed picture with Northern Star losing 0.3% and Evolution dropping 1.1%, while Newmont improved by 1.1% and West Africa Resources surged 3.9%.

Banking stocks were uniformly positive. NAB rose by 2% to $36.69, CBA advanced by 1.4% to $128.63, Westpac added 1.2% to reach $27.47, and ANZ edged up 0.6% to $28.82.

Fast food franchisee Collins Foods experienced a robust 7.3% climb to $10, spurred by a substantial 15.6% boost in full-year net profit, amounting to $60 million. Interim CEO Kevin Perkins highlighted how operational efficiency and cost control, coupled with the opening of 17 new outlets, aided profitability.

The Australian dollar strengthened to buy 66.69 US cents, up from 66.40 US cents at Monday’s close.

  1. The S&P/ASX200 index ended Tuesday up 105.1 points, or 1.36%, at 7,838.8.
  2. The All Ordinaries increased by 101.9 points, or 1.28%, ending at 8,076.9.

Currency Snapshot:

  • One Australian dollar was buying 66.69 US cents, compared to 66.40 US cents the previous day.
  • Against the Japanese yen, it reached 106.31 from 106.05 yen.
  • The euro exchange rate improved slightly to 62.11 euro cents from 62.07 euro cents.
  • The pound sterling rate edged up to 52.55 British pence from 52.51 pence.
  • The New Zealand dollar rose to 108.81 NZ cents from 108.61 NZ cents.