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Commonwealth Bank's first-half profit inspired a rush on financial shares while technology stocks also surged on a good day for ASX investors.

CBA has flagged an additional $2 billion share buyback after first-half profit jumped 26 per cent to $4.7 billion.

Financial giants have impressed investors with their earnings and helped stoke expectations of the Commonwealth Bank figures due on Wednesday.

Border closures have cost the Australian economy billions of dollars with bosses having trouble finding suitable staff in the absence of skilled migrants.

Financial shares were the worst performers on the ASX, while mining and energy stocks helped offset some of the losses.

Easing of lockdown restrictions and a splurge by festive season shoppers have helped retail sales jump by a record 8.2 per cent in the December quarter.

Australia and New Zealand Banking Group has flagged softer revenue and lower margins in the December quarter amid tough competition in the home loans market.

Shares had their best week of the year on the ASX as investors turn their attention from rate rises to Australian earnings season.

The Reserve Bank of Australia says the economy has bounced back strongly from last year's Delta lockdowns and the signs indicate the effect from the Omicron variant on spending has been relatively small.

The Reserve Bank of Australia will give a broad view of its outlook for the economy and interest rates when it releases its quarterly statement on monetary policy.

Technology shares have plunged five per cent and the ASX closed lower after Facebook's owner reported disappointing earnings and swayed world markets.

Three mystery cases have been recorded among today's 19 new local COVID cases, as the University of Western Australia becomes the state's first to restrict access for the unvaccinated.

Australia's construction industry suffered a slump over December and January due to the impact of the Omicron variant, continuing the sector's volatile run over the past six months.

A remark by Philip Lowe that rates could rise in 2022 has not troubled ASX investors, who kept a broad-based rally going throughout the day.

Scott Morrison wants to see the unemployment rate below four per cent in the second half of this year, but Employment Minister Stuart Robert says it could come sooner.

Investors have cheered the Reserve Bank downplaying the prospect of higher rates soon as they helped the ASX to a broad-based rally.

Labor has hit out at a federal government proposal to give aged care workers a $800 bonus, calling the boost a "sugar hit" which ignored other problems.

A close contact of the initial COVID-19 case reported from BHP’s iron ore operations in the Pilbara has also tested positive for the virus.

Australia's share market has had its worst month in almost two years as investors wait to see if the Reserve Bank will join peers in flagging higher rates this year.

About 80 workers are isolating at a BHP mine site in Western Australia's Pilbara region after a contractor tested positive to COVID-19.

Australia's peak oil and gas lobby group has called for tax incentives in the next federal budget, while conservation groups demand fossil fuel subsidies be slashed.

Western Australians who have refused to get vaccinated against COVID-19 are being denied entry to most public venues as tough new rules come into effect.

Shares had their best day since October 2020 on the ASX and gave brief respite for investors fearing the Reserve Bank will join the rate rise movement of 2022.

New figures show the federal budget bottom line is improving as more people get back to work and fewer people need welfare payments.

Standard & Poor's has affirmed Australia's AAA rating, saying its economic recovery from the COVID-19 shock should help narrow the budget deficit.

Australia's share market is headed for its worst week in almost two years after investors despaired at confirmation of impending rate rises in the US.

Defence Minister Peter Dutton says there are "many worrying signs" from Russia on the Ukrainian border as Europe looks to Australia as a potential gas supplier with Kremlin tensions increasing.

Big falls from WA companies have driven shares to plummet to their second-steepest fall of the year, while a higher than expected inflation reading added to fears of higher rates.

The Aboriginal flag is now owned by the federal government and freed for public use after a $20 million copyright transfer deal was finalised.

Investors have taken money out of the ASX to start a week in which Australian inflation data and US Federal Reserve decisions could change market dynamics.

Treasurer Josh Frydenberg has been quick to point out that interest rate decisions are up to the Reserve Bank as speculation mounts for a rise this year.

Stocks on the Australian market had their second-steepest fall of the year as investors brace for news next week of the path to higher global interest rates.