The local share market has finished higher as traders digested what a mixed United States inflation report and better-than-expected Australian jobs data could mean for interest rates.
The benchmark S&P/ASX200 index on Thursday finished 32.6 points higher at 7,186.5, a gain of 0.46 per cent, while the broader All Ordinaries rose 36.9 points, or 0.5 per cent, to 7,382.6.
The market was already in the green but climbed further after the Australian Bureau of Statistics reported employment increased in August by 65,000 people - roughly three times the number economists had expected.
Unemployment held steady at 3.7 per cent but digging into the details, there were less encouraging signs.
Hours worked fell and the job growth was skewed towards part-time workers.
HSBC economists Jamie Culling and Paul Bloxham said the Reserve Bank would see the report as a positive outcome, although it still highlighted some risks around the inflation outlook.
Sean Langcake, head of macroeconomic forecasting for Oxford Economics Australia, said the data would not move the needle for the Reserve Bank.
He expects the RBA to keep rates on hold for the foreseeable future.
In the US, the Labor Department reported overnight that consumer prices rose 3.7 per cent in the year to August, hotter than in July and slightly more than economists were expecting.
"The overall result echoes that of prior months, welcome progress on disinflation balanced against growing signs of stickiness in underlying inflationary pressures," St George economists wrote in a note.
The futures market is now projecting just a three per cent chance of a Federal Reserve rate hike next week, but about a 40 per cent chance of one later this year.
More immediately, economists and markets are split on whether the European Central Bank will raise rates for the 20 countries that share the euro at its meeting on Thursday night, Australian time.
Eight of the ASX's 11 official sectors finished higher on Thursday, with consumer discretionary and staples basically flat and health care dropping 0.6 per cent.
The heavyweight mining sector was the biggest gainer, climbing one per cent, with Fortescue Metals gaining 4.1 per cent to $20.41, Rio Tinto advancing 1.8 per cent to $115.45 and BHP climbing 0.8 per cent to $44.14.
The Big Four banks all finished higher, with ANZ and NAB both adding 1.1 per cent to $25.60 and $29.31 respectively while CBA gained 0.4 per cent to $102.13 and Westpac advanced 0.6 per cent to $21.62.
In the energy sector, uranium developers and producers had a banner day after uranium prices hit a decade high on predictions of a doubling of demand by 2040.
Bannerman Energy climbed 10.2 per cent to a one-and-a-half-year high of $2.60, Boss Energy rose 8.8 per cent to an all-time high of $4.32 and Deep Yellow rose 8.3 per cent to a one-year high of $1.05.
The Australian dollar was about a 10-day high against its US counterpart, buying 64.42 US cents, from 64.10 US cents at Wednesday's ASX close.
ON THE ASX:
* The S&P/ASX200 index finished Thursday up 32.6 points, or 0.46 per cent, at 7,186.5.
* The All Ordinaries gained 36.9 points, or 0.5 per cent, to 7,382.6.
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 64.42 US cents, from 64.10 US cents at Wednesday's ASX close
* 94.76 Japanese yen, from 94.42 Japanese yen
* 59.95 Euro cents, from 59.66 Euro cents
* 51.54 British pence, from 51.45 British pence
* 108.52 NZ cents, from 108.67 NZ cents
