The S&P/ASX200 rose 30 points on Thursday, up 0.33 per cent, to 9,083.8, as the broader All Ordinaries advanced by 43.3 points, or 0.47 per cent, to 9,298.5.
It was a modest rebound for the top-200 after falling more than two per cent in just over a week, driven by a recent slump in bank stocks prompted by housing market worries.
"Investors are continuing to desert that sector in response to the recent trading updates, which really have revealed the impact of the federal government's budget changes on the housing market and mortgage demand," IG market analyst Tony Sycamore told AAP.
There were some positive signs for the retail sector, as buy now, pay later player Zip Co and Supercheap Auto owner Super Retail clocked double-digit share price gains after posting strong full-year results.
Conversely, infrastructure services company Downer and IDP Education tumbled more than 10 and 20 per cent, respectively, after their financial reports came with cautious outlooks.
"Right now, if you talk about things slowing down, you're getting punished and hit hard," Mr Sycamore said.
At a sector level, resources led the bourse with a 3.5 per cent improvement on surging precious metals prices, after a US government bond market intervention pulled long-ended yields back from multi-decade highs.
Gold hit its highest price in 11 weeks before settling near $US4,493 ($A6,313) an ounce, helping boost the local sub index more than eight per cent.
BHP shares surged to within 23 cents of their record peak, still locking in a best-ever close of $65.75, despite copper and iron ore futures easing over the session.
Fortescue was a notable exception to the mining rally, its shares slipped 0.6 per cent to $17.95 as a writedown at its Iron Bridge project hit its 2025/26 bottom line.
Energy stocks gained 0.5 per cent as Brent crude firmed to just below $US92 a barrel, while select coal miners and uranium stocks added extra support.
Health care stocks continued their recent rebound, up more than 40 per cent from June lows after strong results from CSL, Pro Medicus and Telix Pharmaceuticals this week.
July's surprise uptick in unemployment to 4.5 per cent didn't move the dial for interest rate expectations, with most analysts still expecting one more hike in 2026, most likely in November.
The Australian dollar was buying 71.22 US cents, up from 70.75 US cents on Wednesday at 5pm.
ON THE ASX:
* The S&P/ASX200 gained 30 points, or 0.33 per cent, to 9,083.8
* The broader All Ordinaries rose 43.3 points, or 0.47 per cent, to 9,298.5
One Australian dollar trades for:
* 71.22 US cents, from 70.75 US cents at 5pm AEST on Wednesday
* 112.78 Japanese yen, from 112.68 Japanese yen
* 60.94 euro cents, from 61.03 euro cents
* 52.30 British pence, from 52.22 pence
* 119.61 NZ cents, from 120.46 NZ cents
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