The ASX 200 hit its highest close since early March as softer CPI eased pressure on the RBA, while Rio Tinto, CSL and Woodside gained ahead of the Federal Reserve decision amid firmer oil prices.
Australia's ASX 200 rose 91 points, or 1.0%, to close at 9,039 on Wednesday, extending gains for a third straight session and reaching its highest level since early March. Softer CPI data reduced pressure on the Reserve Bank of Australia after three rate hikes earlier this year, though gains were tempered by weaker U.S. stock futures and higher oil prices following Iran's attack on U.S. forces. Investors also remained cautious ahead of the Federal Reserve's interest rate decision and briefing later in the day. Nearly all sectors advanced, led by healthcare, retail, consumer services and consumer non-durables. Rio Tinto gained 3.7% after reporting its strongest first-half earnings in four years and its largest interim dividend since 2022, CSL jumped 7.2% after announcing trials of a new immunoglobulin manufacturing process, and Woodside Energy rose 1.4% as second-quarter revenue increased 28% and the company narrowed full-year guidance. Three of the four major banks were subdued, with only ANZ Group posting a gain, up 1.4%.