At closing bell, the benchmark S&P/ASX200 advanced 62 points, or 0.92%, to 6,824.61. The broader All Ordinaries added 63.36 points, or 0.9%, to 7,090.86.
RBA governor Philip Lowe, in a speech in Canberra, reiterated the bank's stance to maintain cash rate at 0.1% and insisted the country will need to maintain "very significant monetary support" for several years. Lowe's comments came a day after the RBA announced it had expanded its bond-buying program by another A$100 billion to support an economic recovery.
Utilities, financials, and healthcare stocks all out-performed and the real estate sector enjoyed its best performance since mid-November as investors looked for pockets of the markets with steady returns rather than strong growth.
Financial stocks closed at their highest in 11 months, with Australia and New Zealand Banking Group rising 2.1% and all other "Big Four" banks also seeing gains.
Energy stocks gained following a rise in oil prices on expectations oil stocks will return to 'normal' levels this year. Santos rose to a one-week high, while Woodside Petroleum gained 0.8%.
Materials sector dragged as the iron ore price descended from recent highs with BHP shedding 2.2% and Rio Tinto 1.1%.
Amcor (AMC) stood out, lifting 4.45 per cent after the packaging company handed down a 65 per cent lift in half year profit to US$417m, slightly raised its dividend to US$0.1175 and upgraded its goals (guidance) for the 2021 financial year.
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ECONOMIC NEWS: Australia Services PMI Expands At Slower Pace In January-- Australia services sector continued to expand in January, with a services PMI score of 55.6, the latest survey from Markit Economics showed on Wednesday. That's down from 57.0 in December, although it remains above the boom-or-bust line of 50 that separates expansion from contraction. Despite softening slightly from December, new business rose at a strong pace overall. Survey respondents often attributed this to new clients as well as an easing in COVID-19 restrictions. Amid reports of higher demand and output requirements, Australian service providers expanded their workforce for the third month in a row. Firms increased employment levels at the fastest pace since May 2019. The survey also showed that Markit's composite PMI slipped to 55.9 from 56.6 in December
Australia Building Approvals Jump 1.9% On Month In December - Australia total number of building permits jumped a seasonally adjusted 10.9% on month in December, coming in at 19,537, the Australian Bureau of Statistics said on Wednesday. That follows the 3.3% monthly increase in November. Permits for private sector houses jumped 15.8% on month to 13,648, while permits for dwellings excluding houses added 2.3% to 5,625. On a yearly basis, overall permits rose 22.8%, permits for houses surged 55.6% and permits for dwellings excluding houses tumbled 19.3%.
CURRENCY NEWS: The Australian dollar changed hands at $0.761, following an earlier low of $0.7599.
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