Australian shares added 17 points, or 0.2%, to reach 8,775 on Wednesday morning, extending earlier gains as Wall Street hovered near record highs overnight and oil prices eased on optimism about an approaching end to the war with Iran. Attention shifted to Thursday’s summit between Donald Trump and Xi Jinping, with investors looking for any signs of progress in resolving trade disputes.
Sentiment was tempered, however, by flash PMI data indicating that private-sector activity in Australia expanded at its slowest pace in three months, as the services sector cooled and manufacturing output slumped. Confidence was further pressured by comments from RBA Assistant Governor Sarah Hunter, who warned that interest rates may need to rise again if inflationary pressures persist, ahead of next week’s policy decision.
On the sector front, non-energy minerals, industrials, and consumer durables led the gains, while communication services and commercial services declined. Among the major movers, BHP Group climbed 2.1% and Rio Tinto advanced 1.0%. Other notable gainers included Northern Star Resources (up 4.0%), Evolution Mining (2.9%), PLS Group (2.8%), and Sandfire Resources (2.7%).
