Australian shares climbed on Wednesday, led by banks after the local central bank cut interest rates as expected, citing softening inflation and global uncertainty from US tariffs, with energy and gold adding to the rise.
The S&P/ASX 200 index rose 0.6% to 8,393.1 points by 0029 GMT.
The benchmark had ended the last session 0.6% higher.
On Tuesday, the Reserve Bank of Australia (RBA) cut its cash rate by 25 basis points (bps), citing cooling inflation at home and a severe downside scenario for global trade from US tariffs, in a move that was fully priced in by markets since the levies were announced in April.
Investors still expect at least two more rate cuts this year to bring the cash rate in the 3.10%-3.35% range.
Financial stocks gained 0.8%, with National Australia Bank, Commonwealth Bank of Australia and ANZ rising 0.5%, 0.6% and 0.8%, respectively.
Gold stocks rose nearly 4%, tracking bullion prices higher as investors sought safe assets amid US fiscal uncertainty. Evolution Mining, St Barbara and Northern Star Resources added 5.3%, 3.4% and 3.9%, respectively.
Energy stocks advanced 1.6% as oil rose on reports that Israel is preparing to strike Iranian nuclear facilities.
Australia’s top gas producer, Woodside Energy, advanced 1.5%, while smaller rival Santos gained 0.9%.
Miners, banks lead Australian shares higher ahead of RBA rate decision
Miners added nearly 1% as iron ore prices inched up amid resilient near-term demand.
In company news, James Hardie Industries’ Australian-listed stock shed 4.6% and was among the top laggards on the benchmark index.
The building materials maker reported a 9% slump in its full-year profit.
New Zealand’s benchmark S&P/NZX 50 index rose 0.5% to 12,712.96.
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