At noon AEST on Monday, the benchmark S&P/ASX200 index was up 44.4 points, or 0.58 per cent, to 7,673.0, while the broader All Ordinaries was up 45 points, or 0.56 per cent, to 7,941.8.
On Friday night, Australia time, a monthly labour market report showed US non-farm payrolls increased by 175,000 in April, compared to expectations for 240,000 new jobs. Unemployment ticked up to 3.9 per cent.
A second report by the Institute for Supply Management showed economic activity in the US services sector contracted in April for the third straight month.
JP Morgan economists said in a client note that while the jobs report by itself wouldn't be enough to move the Fed on interest rates, the central bank might cut rates if it were followed by additional weakness in future reports.
JP Morgan still expects the US to trim rates in July, which is sooner than consensus expectations.
Australia's Reserve Bank will make its own decision on interest rates on Tuesday, with 36 experts surveyed by Finder all in agreement that the central bank would hold rates at 4.35 per cent.
At midday, every sector of the ASX was up except industrials, which had dipped 0.2 per cent, and health care, which was flat.
The interest-rate-sensitive property sector was the biggest gainer, up 1.7 per cent. Goodman Group had gained 4.0 per cent to $33.92, just shy of its all-time high.
Westpac was leading the big banks higher after Australia's largest corporation announced it was raising its dividend and engaging in a $1 billion share buyback despite a drop in profit.
Westpac said made a $3.5 billion net profit after tax for the six months to March 31, down eight per cent from a year ago.
"This half, we've managed growth and margins in a disciplined way amid a slowing economy and competitive banking sector," chief executive Peter King said.
Westpac shares were up 2.5 per cent to $27.07, while ANZ, CBA and NAB all added 0.7 per cent.
In the heavyweight mining sector, BHP and Rio Tinto were also both up 0.7 per cent, while Fortescue climbed 1.7 per cent.
Elsewhere, dual-listed Kiwi company Tourism Holdings plunged 37.7 per cent to an all-time low of $1.625 after the RV rental operator advised it now expects to earn about $51.5 million in profit in 2023/24, down from previous guidance of $75 million.
"The weakening economy has impacted most regions and business divisions negatively and lowered expectations into Q4," the Auckland-based company said.
On the flip side, Southern Cross Electrical Engineering soared 20.2 per cent to a 15-year high of $1.4725 after being awarded a $160 million contract for a massive battery project in Collie, WA, meant to help the state replace its coal-fired power with renewable energy.
