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Highlights

  • S&P/ASX 200 rose 0.8% to 7,904.7 points, recovering from a 1.7% loss in the previous session.

  • Reserve Bank of Australia (RBA) expected to hold rates at 4.10%, with a 90% market expectation for no change.

  • Miners (+1.3%) and banks (+0.5%) led gains, with BHP, Rio Tinto, and Fortescue rising.

Australian shares rose nearly 1% on Tuesday, driven by performances in the banking and mining sectors. Investors closely watched the Reserve Bank of Australia's (RBA) interest rate decision, which is widely expected to hold the cash rate at 4.10% after a rate cut in February.

The S&P/ASX 200 index climbed 0.8% to 7,904.7 points by 2332 GMT, bouncing back from Monday’s 1.7% decline.

According to ANZ analysts, the central bank’s post-meeting statement may reflect global economic uncertainties, particularly U.S. trade policies and geopolitical risks, possibly hinting at a dovish stance for future rate cuts.

Banking and Mining Stocks Lead Gains

The financial sector rose 0.5%, with the Big Four banks—Commonwealth Bank, Westpac, ANZ, and NAB—gaining between 0.6% and 0.9%.

Despite a pullback in iron ore prices, mining stocks advanced 1.3%.

  • BHP (+1.2%), Rio Tinto (+0.9%), and Fortescue (+1.6%) led the sector higher.

Meanwhile, gold stocks (+0.4%) tracked record bullion prices, as investors turned to safe-haven assets amid global uncertainty. Northern Star Resources (+1.5%) and Evolution Mining (+1.7%) were among the biggest gainers.

Energy Sector Gains as Oil Prices Climb

Oil prices hit a five-week high on supply concerns, pushing the energy sector 1% higher.

  • Woodside Energy (+1.6%) and Santos (+1.5%) contributed to the gains.

New Zealand Market Remains Flat

In New Zealand, the S&P/NZX 50 index was largely unchanged at 12,266.51 points. Meanwhile, the Reserve Bank of New Zealand announced that it is in the process of selecting a new governor for a six-month term.