Australian Stocks Finish Higher

The S&P/ASX 200 ended 0.3% higher at 8,644 on Wednesday, extending gains from the previous session as strength in tech and energy stocks lifted the market. The index struggled for direction earlier in the session, a day after the Reserve Bank of Australia delivered a back-to-back rate hike in a narrow call. The central bank flagged that the intensifying Middle East war poses a risk to inflation. However, this pushed the energy sector up 0.7% as oil prices climbed on renewed Iranian attacks on the UAE, fueling concerns over tightening global supply. Oil and gas producer Woodside Energy edged up after naming Liz Westcott as CEO and managing director, while Santos (0.8%) and Beach Energy (2.5%) also posted gains. Technology stocks added 1.6%, tracking their Wall Street peers, and the mining sub-index finished 0.4% up. Heavyweight miner BHP Group also jumped 0.7% after naming Brandon Craig, its Americas president, as CEO to succeed Mike Henry, while Rio Tinto gained 0.8%.

The S&P/ASX 200 was largely unchanged to around 8,600 in Wednesday morning trade, halting gains from the prior session as the ongoing Middle East conflict and a narrow back-to-back rate hike by the RBA weighed on sentiment. The decision surprised markets with a tight 5–4 split vote, while Governor Bullock stressed that the debate was about timing rather than direction and warned inflation risks remain, reinforcing a hawkish outlook. Markets lifted bets on another hike in May, with further tightening still priced in by August. On the geopolitical front, Iranian state media confirmed the death of the secretary of the Supreme National Security Council, while renewed strikes on the UAE energy infrastructure heightened concerns over prolonged supply disruptions. Rate-sensitive financials led the losses, with four of the largest banks down 0.1% to 2%. Meanwhile, the mining sector was flat, as gold miners fell 0.6%, while heavyweights BHP and Rio Tinto gained 0.5% and 0.2%, respectively.

The S&P/ASX 200 rose 0.4% to close at 8,614 on Tuesday, snapping a three-session losing streak even as the Reserve Bank of Australia delivered its second straight month of rate hikes. The central bank’s nine-member policy committee voted 5–4 to lift the cash rate by 25 bps to 4.1% from 3.85%, marking back-to-back rate hikes since mid-2023 and reversing two of last year’s three cuts. The RBA signaled growing unease that inflation, still running above its 2–3% target band, may remain elevated for “some time.” Officials pointed in particular to escalating tensions in the Middle East as a key source of upside risk, warning that further increases in global energy and commodity prices could feed through to domestic inflation. Banking stocks were among the gainers, with Commonwealth Bank of Australia, National Australia Bank, Westpac Banking Corporation, and ANZ Group rising between 0.4% and 1.1%, while miners, including BHP Group, Rio Tinto, and Fortescue, advanced 0.2% to 1.1%.