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Highlights

  • S&P/ASX 200 rose 0.3% to 8,867.30, led by financials and discretionary stocks.

  • Star Entertainment surged 29.2% after announcing sale of its 50% stake in a Brisbane resort.

  • Investors awaited the Reserve Bank of Australia’s interest rate decision later in the day.

Australian shares reached a record high on Tuesday, supported by gains in financial and consumer discretionary sectors, while investors awaited the Reserve Bank of Australia’s (RBA) monetary policy announcement due later in the day.

The S&P/ASX 200 index rose 0.3% to close at 8,867.30 as of 0035 GMT, building on a 0.4% gain in the previous session. Market focus remained on the RBA’s two-day meeting, where participants widely anticipated a quarter-point cut in the cash rate. The central bank has already implemented 50 basis points of rate reductions earlier in the year to support economic activity.

Financials Lead Gains

Bank stocks advanced 0.7% as lower interest rates are expected to encourage higher lending volumes. All of the “Big Four” banks recorded gains between 0.7% and 1.7%. Commonwealth Bank of Australia is scheduled to release its full-year results before market open on Wednesday. Westpac Banking Corporation and Australia and New Zealand Banking Group will report quarterly results later this week, with investors watching for updates on lending margins and asset quality.

Consumer Discretionary Stocks Advance

Consumer discretionary shares rose 0.5%, with JB Hi-Fi recording maximum gains in the sector. Shares of the electronics retailer climbed 5%, recouping some losses from the previous session after analysts maintained confidence in the company’s sales outlook.

Star Entertainment recorded its largest single-day percentage gain, soaring 29.2%, after securing an agreement with its Hong Kong-based partners to sell its 50% ownership in the AUD 3.6 billion (USD 2.35 billion) Brisbane resort. The transaction was well-received by the market, boosting the company’s valuation and daily trading volumes.

Mixed Performance in Resources

The mining sector was largely unchanged, with a 0.2% gain in BHP Group offsetting declines in Rio Tinto and Fortescue Metals Group. The gold sub-index slipped 0.1% as bullion prices eased overnight following comments from U.S. President Donald Trump indicating no new tariffs on imported gold bars.

Northern Star Resources declined 0.7%, while Evolution Mining rose 0.1%. Energy shares edged down 0.1% despite relatively stable crude oil prices, and technology stocks rose 0.4%, adding to the sector’s recent upward momentum.

New Zealand Market Moves Higher

Across the Tasman, New Zealand’s benchmark S&P/NZX 50 index added 0.2% to 12,937.55, supported by modest gains across utilities and industrials.

The upcoming RBA decision is expected to influence short-term market direction, with investors positioning portfolios ahead of the announcement.