Australian shares have had their strongest session since early August after lower-than-feared inflation figures tempered concerns of further imminent interest rate hikes.
The S&P/ASX200 gained 80 points on Wednesday, up 0.92 per cent, to 8,798.3, as the broader All Ordinaries improved by 82.6 points, or 0.93 per cent, to 8,969.2.
Headline inflation rose 4.0 per cent in the year to August, up from July’s 3.5 per cent but below forecasts, leaving the door open to further Reserve Bank cash rate hikes while providing slightly more breathing room than previously feared.
Interest rate-sensitive sectors like consumer retail and real estate – recently under pressure due to high borrowing costs and weak market sentiment – rebounded more than 2.6 and 3.6 per cent respectively, leading the other nine sectors higher.
The Australian dollar is buying 69.76 US cents, down from 69.93 US cents on Tuesday at 5pm.
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