Australian shares have overcome an early dip to close the day higher, ahead of an expected tariff deal between the US and UK.
The S&P/ASX200 gained 13.4 points on Thursday, or 0.16 per cent, to 8,191.7 as the broader All Ordinaries rose 21.9 points, or 0.26 per cent, to 8,421.7.
The Australian market rebounded after falling at the open, after US President Donald Trump teased a trade deal to be announced at a White House press conference at midnight AEST.
While the first trade deal - or more likely a tariff reduction - would be important, the outcome of US-China negotiations this weekend in Switzerland were even more crucial, Moomoo market strategist Jessica Amir said.
"I think that that will put fire under the belly of commodities," she told AAP.
"I do believe that the bull scenario could gain firepower if there is any reduction of tariffs on either side of the US or China."
US earnings, outlooks and macroeconomic data had all been stronger than expected, she said, and recently downtrodden energy and materials sectors could catch a bid when more trade deals were brokered and market sentiment improved.
Eight of 11 local sectors made gains over the session, with IT stocks up 1.3 per cent and industrial and utilities each pushing more than 1.7 per cent higher.
Financials weighed on the bourse, down 0.6 per cent as ANZ sold off after posting mixed half-year results, and Westpac lost 4.1 per cent after going ex-dividend.
NAB was the best performer of the big four banks for the second straight session after its earnings beat expectations on Wednesday, rising 1.4 per cent to $36.37.
The materials sector rose 0.5 per cent, thanks largely to gold miners as large-cap iron ore miners were mostly flat and critical minerals plays sold off.
Gold futures traded lower by the end of the session to $US3,335, roughly five per cent down from all-time highs.
Orica outperformed the market, surging 7.4 per cent after the explosives maker's half-year results pointed to solid returns excluding impairments.
Bitcoin is knocking on the door of the $US100,000 ($A156,000) key psychological level, helped by the introduction of new US legislation and a tentative lift in investor appetite.
"The new 'Digital Asset Market Structure Discussion Draft' introduced by House Republicans on May 5 in the USA could work to reduce the dominance of large crypto firms and promote more participation in the broader market," said Kate Cooper, chief executive at trading platform OKX Australia.
"I see this as being a positive driver of crypto prices in the short-to-medium term."
The Australian dollar is buying 64.10 US cents, down from 64.83 US cents on Wednesday at 5pm.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Thursday 13.4 points higher, or up 0.16 per cent, to 8,191.7
* The broader All Ordinaries as the broader All Ordinaries gained 21.9 points, or 0.26 per cent, to 8,421.7
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 64.10 US cents, from 64.83 US cents on Tuesday at 5pm
* 92.53 Japanese yen, from 92.66 Japanese yen
* 56.79 Euro cents, from 57.03 Euro cents
* 48.24 British pence, from 48.53 pence
* 108.17 NZ cents, from 108.01 NZ cents
