The S&P/ASX 200 index closed 0.4 per cent higher at 7,302.5, a day after ending 0.3 per cent lower.
Technology stocks were the best performers on the benchmark index, jumping 2 per cent to close at a more than one-month high.
Buy-now-pay-later giant Afterpay Ltd gained 1 per cent, while Iress Ltd marked its best session ever after local media reported that investment bank Barrenjoey was interested in buying a stake in the financial technology company.
Brad Smoling, managing director at Smoling Stockbreaking, said the jump in tech stocks was not predicated on anything significant and that stocks like Afterpay were over-priced.
“I do think that the CPI figure is going to be on higher side, in which case we will see a tech sell-off,” he warned.
Banks rose 0.4 per cent, with three of the so-called “Big Four” closing in positive territory.
Domestic gold stocks recorded gains, even as bullion prices remained largely subdued, with investors turning cautious ahead of the US. inflation data and a European Central Bank meeting.
Andromeda Metals surged 20.9 per cent to close at its highest since April 21 after signing a binding offtake agreement with China-based Jiangsu Mineral Sources International Trading Co.
Energy stocks fell 1.1 per cent and capped gains on the index, as oil prices fell on weaker-than-expected fuel demand.
Major oil and gas explorers Santos Ltd and Woodside Petroleum Ltd fell 0.9 per cent and 1.5 per cent respectively, with the latter recording its worst session since May 21.
Shipbuilder Austal Ltd closed at a near one-week low after the country’s corporate regulator launched a legal action for alleged disclosure breaches.
New Zealand’s benchmark S&P/NZX 50 index closed 0.4 per cent lower at 12,518.01.
