The S&P/ASX 200 index closed 1.1% higher at 7,386.4 in its second straight session of gains, shrugging off worries over extended lockdowns in major states of the country.
“It’s more of a relief rally. The huge fall on Monday rattled the market, but it seems like it was a short-term glitch,” said Brad Smoling, managing director of Smoling Stockbroking.
“We are going to enter the high volatility time frame. Whether the market keeps the upward trajectory with the volatility is a big question.”
Mining stocks jumped 2.5%, led by a rally in lithium miners. Lynas Rare Earths jumped 9% on a A$14.8 million ($10.9 million) grant from Australia for a new rare earth refining process.
Orocobre rallied 9.9% to A$7.65, touching its highest level on record, as its lithium production for the June quarter jumped 31%.
Peer Pilbara Minerals closed at its highest level on record, up 10.1% at A$1.69.
Global miner BHP Group climbed 3.1% on striking a nickel supply agreement with Tesla Inc.
Energy stocks rose 2.5%, led by a 6.2% jump in Whithaven Coal.
Santos Ltd, the country’s second-largest independent gas producer, gained 2.6% on raising the lower end of its annual production outlook.
Gold stocks and financials advanced 1.9% and 1%, respectively. The big four banks rose between 0.7% and 1.5%.
Healthcare stocks sat out of Thursday’s rally, ending 0.3% lower. Sector heavyweight CSL Ltd slipped 0.4%.
In New Zealand, the benchmark S&P/NZX 50 index rose 0.09% to 12,720.8.
