Australian shares rise 2% on mining boost; core inflation slows slightly in February

Australian shares rose 2% on Wednesday and were on course for their biggest daily gain in nearly a year, with miners and banks leading the charge, while investors digested data that showed February core inflation came in a little slower than forecast.

The S&P/ASX 200 index climbed 2% to 8,544.80 by 0041 GMT, heading for its best day since April 10, 2025.

The index had closed 0.2% higher on Tuesday.

Data showed that the trimmed mean measure of core inflation increased by 0.2% last month, under forecasts of 0.3%, though a war-driven spike in oil prices has since magnified inflationary risks.

Following the data, markets are wagering a nearly 50% chance of the Reserve Bank of Australia raising the interest rate to 4.35% in May.

Index heavyweight miners rose 4% and were on track for their biggest daily gain since April 10, 2025.

BHP Group climbed 2.7%, while Rio Tinto gained 0.9%.

Australia will surely have a floor price in its strategic reserve for critical minerals, Resources Minister Madeleine King said.

The government unveiled a A$2 billion investment over 10 years to support Rio’s Boyne Smelters to stay open.

Rate-sensitive financials rose 2%, with the “big four” banks advancing between 1.2% and 2.2%.

Gold stocks climbed as much as 8.5%, with Evolution Mining up 6.1%.

Bucking the trend, energy stocks dropped 2.8% as oil prices fell following reports that Washington had sent Tehran a 15-point plan to end the war in the Middle East.

Santos fell 2.8%, while Woodside Energy dropped 3.9%.

Technology stocks fell as much as 1.5% to hit their lowest since mid-May 2023.

The sub-index tracked losses in US peers and was set for a fifth straight session of fall.

In New Zealand, the benchmark S&P/NZX 50 index rose 1.3% to 12,872.63, heading for its best session in two weeks.