Australian shares rise 2% on mining boost; core inflation slows slightly in February

Australian shares rose 2% on Wednesday and were on course for their biggest daily gain in nearly a year, with miners and banks leading the charge, while investors digested data that showed February core inflation came in a little slower than forecast. The S&P/ASX 200 index climbed 2% to 8, 544. 80 by 0041 GMT, heading for its best day since April 10, 2025. The index had closed 0. 2% higher on Tuesday. Data showed that the trimmed mean measure of core inflation increased by 0. 2% last month, under forecasts of 0. 3%, though a war-driven spike in oil prices has since magnified inflationary risks. Following the data, markets are wagering a nearly 50% chance of the Reserve Bank of Australia raising the interest rate to 4. 35% in May. Index heavyweight miners rose 4% and were on track for their biggest daily gain since April 10, 2025. BHP Group climbed 2. 7%, while Rio Tinto gained 0. 9%. Australia will surely have a floor price in its strategic reserve for critical minerals, Resources Minister Madeleine King said. The government unveiled a A$2 billion investment over 10 years to support Rio’s Boyne Smelters to stay open. Rate-sensitive financials rose 2%, with the “big four” banks advancing between 1. 2% and 2. 2%. Gold stocks climbed as much as 8. 5%, with Evolution Mining up 6. 1%. Bucking the trend, energy stocks dropped 2. 8% as oil prices fell following reports that Washington had sent Tehran a 15-point plan to end the war in the Middle East. Santos fell 2. 8%, while Woodside Energy dropped 3. 9%. Technology stocks fell as much as 1. 5% to hit their lowest since mid-May 2023. The sub-index tracked losses in US peers and was set for a fifth straight session of fall. In New Zealand, the benchmark S&P/NZX 50 index rose 1. 3% to 12, 872. 63, heading for its best session in two weeks.

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