The benchmark S&P/ASX200 index on Monday rose 59.3 points, or 0.77 per cent, to 7,761.0, while the broader All Ordinaries gained 53.3 points, or 0.67 per cent, at 8,024.1.
It was the ASX's first two days of back-to-back gains since May 15-16. On Friday, the ASX200 rose 0.96 per cent.
The gains came after the April US personal consumption index - the Federal Reserve's preferred metric of inflation - were slightly softer than expected late Friday, with core prices rising 2.8 per cent on an annual basis.
While inflation is still too high to make the Fed consider imminent cuts, the readout would provide some confidence the disinflation process is still under way, albeit slowly, according to ANZ economists Brian Martin and Daniel Hynes.
Traders saw the report as increasing the odds of an initial US rate cut in mid-September and a second by the end of the year.
Domestically, the Fair Work Commission on Monday announced all minimum wage awards would increase by 3.75 per cent from July 1, the midpoint of the 3.5 per cent to 4 per cent increase that had been expected.
RBC Capital Markets chief economist Su-Lin Ong said there had been trepidation in markets with unions seeking a five per cent increase and industry groups arguing for around two per cent, but the outcome was fair, prudent and likely to be welcomed by the Reserve Bank.
Nine of the ASX's 11 sectors finished higher, with telecommunications basically flat and tech down 0.7 per cent.
The financial sector was the biggest gainer, rising 1.5 per cent, with insurance companies doing particularly well.
QBE rose 2.6 per cent to a 14-year high of $18.26, while IAG added 1.8 per cent to $6.31 and Suncorp grew 1.3 per cent to $16.12.
Westpac led the Big Four banks higher, rising 2.5 per cent to $26.63, followed by NAB which gained 1.6 per cent to $34.46.
CBA finished 1.5 per cent higher at $121.29 and ANZ rose 1.2 per cent to $28.58.
The energy sector was an early leader after the OPEC+ oil cartel agreed over the weekend that oil output cuts would continue into well 2025, but some of those gains faded in the afternoon.
Still, Woodside finished 0.8 per cent higher at $27.93 and Whitehaven Coal rose 2.4 per cent to a four-month high of $8.25.
In the heavyweight mining sector, BHP rose 0.7 per cent to $44.81 and Fortescue edged 0.2 per cent higher at $24.78, while Rio Tinto dipped 0.3 per cent to $128.52.
Goldminers were mostly lower as the precious metal changed hands near a three-and-a-half-week low of $US2,322 an ounce. Evolution fell 1.0 per cent, Northern Star dropped 0.7 per cent and mid-tier miner Red5 retreated 5.6 per cent.
In the consumer discretionary sector, Lovisa plunged 10.4 per cent to a five-week low of $30.40 after the fast-fashion retailer gave an update on its CEO succession plans.
Smiggle boss John Cheston will take over as CEO in a year's time, replacing Victor Herrero, who joined the company in December 2021.
Premier Investments, which owns the back-to-school brand Smiggle and several other retail chains, fell 4.1 per cent to $28.83.
The Australian dollar was buying 66.41 US cents, from 66.40 US cents at Friday's ASX close.
ON THE ASX:
* The benchmark S&P/ASX200 index on Monday gained 59.3 points, or 0.77 per cent, to 7,761.0
* The broader All Ordinaries rose 53.3 points, or 0.67 per cent, to 8,024.1
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 66.41 US cents, from 66.40 US cents at Friday's ASX close
* 104.45 Japanese yen, from 104.16 Japanese yen
* 61.21 Euro cents, from 61.36 euro cents
* 52.15 British pence, from 52.21 pence
* 108.20 NZ cents, from 108.34 NZ cents
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