Australian shares rose 0.5 percent to 6,845.1, their highest in six weeks with energy leading gains.
ANZ shares had their worst session since June, falling 3.3% after it warned that rising interest rates would cloud the outlook. Investors sold money after data on Wednesday showed inflation soared to a 32-year high, fueling speculation of higher interest rates for longer.
NAB fell 0.5 per cent, Westpac was down 1 per cent but CBA gained 0.4 per cent. Pinnacle retreated 3.3% after its assets fell during the quarter.
It was also a tough session for Australian Clinical Labs after it disclosed a cyber attack on its subsidiary Medlab. It sank 5.4 percent and briefly touched an all-time low.
Retailers had a good day, with JB Hi-Fi gaining 0.4% after posting double-digit sales growth in the first quarter. Super Retail advanced 2.7% after posting a 20% increase in sales in the first three months of the new financial year.
Fortescue Metals shed 0.4% on rising costs amid lower ore prices. But mining heavyweights Rio Tinto and BHP rose. Core Lithium fell 5.1% after failing to secure a contract with Tesla. Whitehaven Coal advanced 3.3% and Santos added 2% to higher oil prices.
Reece rose 2.2 percent after inflation boosted its earnings in the first quarter of the year.