Australian shares climbed 40 points, or 0.5%, to 8,848 in Wednesday morning trade, breaking a two-session pause and reaching their highest level in a week. The rebound followed stronger U.S. futures, supported by an overnight rally in semiconductor stocks, while softer-than-expected U.S. inflation data sharply lowered the probability of a July rate hike.
Domestic sentiment also brightened, with July consumer confidence and June business conditions improving as geopolitical tensions eased. Upside, however, was limited by caution ahead of the Q2 GDP release from China, Australia’s largest trading partner, due later today, with investors alert to any further signs of slowing growth.
Electronic technology stocks led the market higher, alongside gains in non-energy minerals, industrial services, and commercial services. Three of the big four banks recorded modest advances, while heavyweight BHP Group jumped nearly 4% on renewed optimism over Chinese infrastructure demand. Other notable movers included Megaport (up 3.7%), Challenger Ltd. (2.6%), and Capricorn Metals (2.0%).
