The S&P/ASX200 spiked more than 0.7 per cent to a new high of 9,213 points, topping its previous record of 9,202.9 set in late February ahead of the Persian Gulf conflict.
It was unclear if the top-200 would follow through, as its lead fell to 17 points, or 0.19 per cent, to 9,162.8 by 11am AEST, while the broader All Ordinaries was up 28.3 points, or 0.29 per cent, to 9,338.7.
Mining stocks provided major support as the raw materials sector jumped 2.5 per cent, however the major banks acted as a ballast as financials fell 1.3 per cent after the segment briefly topped its own record high.
CommBank led the big four banks lower with a 2.5 per cent dip to $176.19, after it rallied more than 15 per cent in eight weeks from June's lows.
"The ASX reaching this new high has been helped by pretty much the whole index, with broad-based gains across the board., etoro analyst Josh Gilbert said.
"That breadth shows money is moving across the market rather than one crowded trade dragging the index higher.Â
"The banks have done some of the heavy lifting over the past few sessions though, as investors position for results."
Resilient household spending data released on Tuesday showed Australian consumers were holding up better than feared, and a record-setting session for Wall Street's S&P500 and Dow Jones Industrial Index had helped set the tone.
Softer-than-expected inflation data a week earlier, and a more measured tone from Reserve Bank governor Michele Bullock last week had also boosted confidence, IG analyst Tony Sycamore said.
"More broadly, the ASX200 has received support from new money coming into the market at the start of the new financial year, while the index has also attracted inflows as a lower-beta safe-haven destination to ride out the ongoing volatility in high-beta, tech-heavy markets in Asia," he said.
"With reporting season set to pick up speed next week, and the usual mix of beats and misses expected, we expect a volatile few weeks ahead."
Oil prices have fallen to three-week lows on reports the US and Iran are close to an initial deal to reopen the Strait of Hormuz, further bolstering risk sentiment and the global growth outlook.
The Australian dollar is buying 70.45 US cents, up from 70.14 US cents on Tuesday at 5pm AEST.
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