The benchmark S&P/ASX200 jumped 62.3 points by midday, up 0.73 per cent, to 8,599.3, as the broader All Ordinaries gained 64.8 points, or 0.73 per cent, to 8,890.1.
The move tracked with a strong lead from Wall Street as bets narrowed on a December interest rate cut in the US, before the inflation spike for the month of October.
"Key US equity indices made solid gains overnight amid increasing expectations the US Fed would cut rates in December following the decline in consumer confidence and soft retail trade numbers," Westpac senior economist Pat Bustamante said.Â
"Traders remain divided on whether the RBA will cut again this cycle, with around 12 basis points of cuts priced in through the end of 2026."
Australian headline inflation soared to 3.8 per cent in October, while the Reserve Bank's preferred trimmed mean measure rose to 3.3 per cent, with both higher than expected and outside the central bank's target range.
Nine of 11 local sectors were trading higher by lunchtime, led by a 1.2 per cent charge in consumer discretionary stocks, on the back of strong performances from Wesfarmers and JB Hi-Fi as November sales roll out.
Harvey Norman shares surged 3.4 per cent to $7.64 after posting 9.1 per cent sales growth so far in the current financial year.
At the other end of the scale, home goods e-commerce play Temple and Webster cratered almost 29 per cent after its trading update missed expectations.
A strong financial sector performance helped lift the broader market, as CBA led the big four higher with a one per cent gain to $154.73 per share, while investment giant Macquarie Group jumped 2.3 per cent.
Raw materials stocks rose roughly half of one per cent, with the major miners edging higher despite iron ore futures easing to $US104.55 a tonne, as copper futures ticked upward.
Gold stocks sold off, despite the spot price ticking higher to $US4,140 ($A6,390) an ounce, with Evolution and Northern Star slipping more than one per cent each, while US-based Newmont traded flat as the greenback came under selling pressure.
Lynas Rare Earths tumbled 3.9 per cent to $14.44 as it confirmed production shortfalls at its Kalgoorlie processing plant due to power outages.
It hopes to make up the shortfall into 2026, as talks continue to settle the issue with supplier Western Power.
Shares in lithium producer Liontown Resources jumped 3.5 per cent as its leadership addressed shareholders at its general meeting, while competitor Pilbara Minerals surged more than four per cent.
Energy stocks grinded 0.4 per cent higher, tracking with a rise in segment giant Woodside, despite oil prices easing as Ukraine hinted at support for a peace framework with Russia.
Elsewhere in the sector, coal producers and uranium plays edged higher.
Real estate stocks leapt out of the gates at the open with a nearly two per cent charge, which contracted to a 0.7 per cent lift by lunchtime, weighed down by the October spike in price growth.
Australia's tech and communications sectors were down 0.2 per cent each.
The Australian dollar is buying 64.81 US cents, up from 64.58 US cents on Tuesday at 5pm, with the US rates outlook weighing on the greenback while the narrowed likelihood of local rate cuts buoyed the Aussie.
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