The benchmark S&P/ASX200 jumped 77.5 points on Thursday, up 0.86 per cent, to 9,068.4, as the broader All Ordinaries surged 76.9 points, or 0.83 per cent, to 9,375.9.
The top 200 soared above 9,100 points for the first time during the session, smashing its previous intraday peak of 9,054 points set in August.
After weeks of low volatility, a shock uptick in September unemployment lit a match under expectations of an interest rate cut.
While many major bank economists expect the Reserve Bank to hold the cash rate at 3.6 per cent in November, rates markets indicate a cut is 80 per cent likely and have fully priced a rate reduction by the end of the year.
"This time yesterday, markets were tossing up whether the first cut would be in the first quarter of next year or the second, so that's that's a pretty significant move," Capital.com market analyst Kyle Rodda told AAP.
"It's given stocks a bit of a boost and that's why we've got those rate-sensitive areas of the market like banks and real estate stocks leading the charge."
Real estate stocks (+2.8 per cent) and financials (+1.2 per cent) led nine of 11 local sectors higher, as the IT and utilities sectors fell behind.
The raw materials sector notched a record close for a third-straight session, as gold continued its gravity-defying run to top $US4,242 ($A6,532) an ounce.
Iron ore giants were mixed, as BHP edged 0.5 per cent higher to $43.77 but Rio Tinto and Fortescue nudged lower along with ore prices.
Investors took profits on rare earths plays despite a lack of progress in the US-China trade spat, forcing Lynas (-5.8 per cent) and Iluka (-10.5 per cent) to hand back some of October's double-digit gains.
Financials were broadly higher despite a mixed performance in the big four banks, while investment giant Macquarie rallied more than five per cent after it sold a data centre network for $62 billion.Â
Elsewhere in finance, wealth management group AMP rocketed to its highest price in five years after boosting its assets under management 3.6 per cent to $159.5 billion in the September quarter.
The energy sector gained one per cent despite a sluggish oil price, as natural gas futures broke out of an eight-day downtrend.
Woodside shares jumped more than one per cent to $22.70 and Santos ticked 0.8 per cent higher, despite a dip in revenue and reduced production guidance in its quarterly report.
Health care stocks continued to gather steam, hitting their highest level since late August in a broad-sector rally.
Mayne Pharma was a highlight, rocketing 11 per cent higher after the NSW Supreme Court ruled US pharmaceutical giant Cosette could not abandon its planned $672 million takeover of Mayne.
The Australian dollar is buying 64.94 US cents, falling from 65.12 US cents on Wednesday at 5pm, despite a soft greenback, as the US-China trade dispute grinds on.
ON THE ASX:
* The S&P/ASX200 gained 77.5 points, or 0.86 per cent, to 9,068.4
* The broader All Ordinaries rose 76.9 points, or 0.83 per cent, to 9,375.9
CURRENCY SNAPSHOT:
One Australian dollar trades for:
* 64.94 US cents, from 65.12 US cents on Tuesday
* 98.09 Japanese yen, from 98.43 Japanese yen
* 55.69 euro cents, from 56.04 euro cents
* 43.38 British pence, from 48.77 British pence
* 113.10 NZ cents, from 113.92 NZ cents
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