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Australian shares rose for a second straight session on Thursday in broad-based buying, with energy and mining stocks leading the gains on stronger underlying commodity prices.

The S&P/ASX 200 index rose 0.5% to 8,130.40 by 0038 GMT.

On Wednesday, the index climbed 1.8% to hit an all-time closing high after softer-than-expected inflation data lowered odds of an interest rate hike next week.

The Aussie dollar was last 0.05% weaker against the US dollar at A$0.65.

Data showed the annual pace of second-quarter core inflation was the slowest since early 2022, prompting investors to rein back the probability of a rate hike at the Reserve Bank of Australia’s policy meeting on Aug. 6.

In Sydney, energy stocks rose as much as 1.4% after oil prices jumped nearly 3% overnight on worries over rising tension in the Middle East and a sharp fall in US crude stockpiles.

Oil and gas producers Woodside Energy and Santos gained 0.8% and 1.3%, respectively.

Brent crude futures rose 0.74% to $81.44 a barrel on Thursday, while US West Texas Intermediate (WTI) crude gained 0.83% to $78.56 per barrel.

Australian shares hit record high; RBA cautious on inflation

Heavyweight miners climbed 1.2% after copper prices rebounded on Wednesday to a one-week high on a weaker dollar and hopes for fresh stimulus from top metals consumer China.

Tech stocks advanced 1.7%, tracking overnight gains in the Nasdaq on Nvidia’s rosy sales forecast.

The US Dow Jones Industrial Average rose 0.24% on Wednesday, the S&P 500 gained 1.58%, and the Nasdaq climbed 2.64%.

Gold stocks rose 1.5% after bullion prices extended gains on Wednesday as US Federal Reserve Chair Jerome Powell hinted at an early rate cut.

In New Zealand, the benchmark S&P/NZX 50 index was 0.7% higher at 12,495.32.

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