ASX's highest close since virus crash

Australia's main share market index closed at its highest level since the coronavirus crash, as the US Federal Reserve joined its Australian peer in reiterating rates will not rise soon.

The benchmark S&P/ASX200 index closed up 70.8 points, or 1.02 per cent, to 6998.8.

The index rose as high as 7012.4 just after 1130 AEST, before easing.

The ASX200 closing result is the highest since the market plunged in February last year, when investors hurriedly sold shares as the pandemic unfolded.

The index is steadily climbing towards its record close, 7162.49, set on February 20 last year.

Meanwhile, the All Ordinaries on Thursday closed higher by 72.9 points, or 1.02 per cent, to 7250.3 points.

ThinkMarkets analyst Carl Capolingua was happy with the progress.

"It's very encouraging that we're breaking out of that trading range," he said.

The ASX200 has traded between about 6700 and 6900 points since the start of February.

"This progress gives confidence to people who haven't put cash in the market to do so," Mr Capolingua said.

CCZ Statton Equities' John Zemek said overseas markets continued to help the ASX.

"The leadership from offshore is fairly strong, despite COVID still hanging around in some areas," he said.

US markets closed little changed prior to ASX trade.

Mr Zemek liked the Federal Reserve's minutes from its most recent meeting, which reinforced the bank's position to remain patient before raising rates.

Fed officials said it would likely take some time for substantial progress on goals of maximum employment and stable prices.

Australia's central bank made similar statements in Tuesday's cash rate decision.

Mr Zemek also cited US President Joe Biden's $US2.3 trillion infrastructure plan, which will build roads, bridges, schools and more, as helpful to the economy and investors.

On the ASX, all sectors were higher.

The materials sector was strongest and rose 1.83 per cent.

Financials was also strong and climbed 1.07 per cent.

The other sector which gained by more than one per cent was telecommunications, up 1.24 per cent.

Regulator ASIC is suing Westpac, claiming the bank supplied consumer credit insurance to customers who had not asked for it.

ASIC wants Westpac fined for selling the products to hundreds of customers in 2015.

The bank is yet to say whether it will defend the claims.

Westpac was best of the big four banks and shares closed up 1.29 per cent to $25.16.

Investors in Westfield-owner Scentre Group served a 'first strike' on executives' pay, after the company leaders produced a full-year loss and reduced final dividend.

Investors participating in the company's annual general meeting cast a 51 per cent vote against executives' remuneration, following pandemic-plagued results.

However, 72 per cent of investors approved the issue of performance rights to chief executive Peter Allen.

Shares were unchanged at $2.89.

In mining, BHP was up 2.57 per cent to $47.06, Fortescue was higher by 2.54 per cent to $21.00 and Rio Tinto was better by 2.15 per cent to $115.88.

EML Payments gained 5.72 per cent to $5.73 following Wednesday's news that it will buy European payments provider Sentenial.

On Friday, the Reserve Bank's twice-yearly assessment of Australia's financial system will likely garner more interest than usual as economists look for any concerns about the housing market.

RBA governor Philip Lowe this week said it was important that lending standards were maintained amid rising house prices and lower interest rates.

The Australian dollar was buying 76.46 US cents at 1720 AEST, the same value as at Wednesday's close.

ON THE ASX

* The benchmark S&P/ASX200 index closed up 70.8 points, or 1.02 per cent, to 6998.8 on Thursday.

* The All Ordinaries closed higher by 72.9 points, or 1.02 per cent, to 7250.3 points.

* At 1720 AEST, the SPI200 futures index was down by three points, or 0.04 per cent, to 6956 points.

CURRENCY SNAPSHOT

One Australian dollar buys:

* 76.46 US cents, from 76.46 cents on Wednesday

* 83.73 Japanese yen, from 83.91 yen

* 64.32 Euro cents, from 64.33 cents

* 55.50 British pence, from 55.38 pence

* 108.60 NZ cents, from 108.54 cents.