Australian shares have notched their first positive session for the week as inflation and bond market jitters ease, but ex-dividend drops in BHP, Woodside and Coles have limited the upside.
The S&P/ASX rose 41.7 points on Thursday, up 0.46 per cent to 9,020.1, as the broader All Ordinaries gained 38 points, or 0.41 per cent, to 9,198.3.
Rebounding bank stocks helped lift the heavyweight financials sector more than one per cent to its highest level in more than two weeks, as local bond yields retreated from Wednesday's spike.
"Financials led the index today as bond yields eased, which when combined with yesterday's better-than-expected GDP figures, paints a slightly less negative outlook for the major banks, particularly around loan growth," Global X ETFs investment strategist Justin Lin said.
However, the move was more likely a reprieve than a turning point.
"Australia is still working through a policy and interest rate-driven deleveraging cycle, which is likely to remain a headwind for the banks," Mr Lin said.
"Market leadership is more likely to remain with materials for the foreseeable future, particularly while commodity prices continue to rise and inflation remains sticky."
Gold miners were among the top 200's best performers as the precious metal recovered to $US4,434 ($A6,191) an ounce, as US Treasury yields and the greenback softened.
They helped lift the materials sector 0.4 per cent, offsetting a 1.3 per cent drop in BHP to $63.78 after the big Australian went ex-dividend.
Woodside shares fell 2.6 per cent to $32.22 after locking in its shareholder payouts, weighing on the energy sector along with a modest dip in crude prices.
The Brent benchmark eased to $US94.40 a barrel amid a relative lull in fighting between the US and Iran, and hints from US President Donald Trump the latest escalation might be short-lived.
In company news, Corporate Travel Management shares cratered by an eye-watering 85.6 per cent after emerging from a more than 12-month trading halt following the long-delayed release of audited financial results on Wednesday.
The stock had been plagued by an overcharging scandal in its UK business after a KPMG review found revenue booked incorrectly on large contracts.
"The clean-up is underway and FY26 underlying earnings improved, but the first day of trading shows it is going to be a long road back," IG market analyst Tony Sycamore said.
Regis Health Care's value shrunk by more than a quarter after it said the federal government's 2.55 per cent increase to the aged care starting price undercut both sector and economy-wide inflation.
The Australian dollar is buying 71.65 US cents, up from 71.39 US cents on Wednesday at 5pm.
ON THE ASX:
* The S&P/ASX200 gained 41.7 points, or 0.46 per cent, to 9,020.1
* The broader All Ordinaries recovered 38 points, or 0.41 per cent, to 9,198.3
One Australian dollar trades for:
* 71.65 US cents, from 71.39 US cents at 5pm AEST on Wednesday
* 112.55 Japanese yen, from 113.96 Japanese yen
* 61.74 euro cents, from 61.72 euro cents
* 53.11 British pence, from 52.91 pence
* 122.32 NZ cents, from 122.30 NZ cents
