ASX Today Live News & Analysis

The Australian share market moved higher after the Reserve Bank increased interest rates in a closely divided decision, raising expectations that the central bank may pause further hikes in May.

The benchmark S&P/ASX200 index rose by 30.9 points, or 0.36 percent, to close at 8,614.3 on Tuesday. The broader All Ordinaries index also gained, climbing 26 points, or 0.3 percent, to 8,819.4. The market had been trading flat around midday but strengthened after the Reserve Bank lifted the cash rate to 4.1 percent, citing ongoing inflation concerns, including rising fuel prices linked to the conflict involving Iran.

Betashares chief economist David Bassanese noted that the Reserve Bank's narrow 5-4 decision indicated that another rate hike at the May policy meeting is not guaranteed. He added that much will depend on the first-quarter inflation data due in late April, as well as whether the recent spike in energy prices proves to be sustained.

IG analyst Tony Sycamore shared a similar view, saying the lack of consensus among policymakers reduced the perceived aggressiveness of the rate hike. He suggested that any additional increase in May would require strong supporting data rather than being a foregone conclusion.

Globally, oil prices remained volatile due to ongoing tensions in the Middle East. Brent crude was trading at around $102.60 per barrel on Tuesday afternoon after briefly dipping below $100 overnight.

Across the Australian market, six of the 11 sectors closed higher, while five finished lower. The technology sector was the weakest performer, falling 1.3 percent as Wisetech Global dropped 3.0 percent and Life360 declined 2.3 percent.

In contrast, the mining sector posted solid gains, rising 1.0 percent. BHP increased 1.1 percent to $49.73, Fortescue climbed 1.3 percent to $19.95, and Rio Tinto edged up 0.3 percent to $155.18.

Gold mining stocks performed strongly as gold prices rose to $5,034 per ounce, up approximately $22 from the previous day. Ten of the top twelve gainers in the ASX200 were gold miners, with Pantoro Gold leading the way with a 12.0 percent surge. Evolution increased 3.7 percent, Westgold rose 4.9 percent, and West African Resources gained 5.8 percent to $2.94 after reporting a net profit of $567 million for 2025.

The financial sector also contributed to the market's gains, with all four major banks finishing higher. Westpac rose 1.4 percent to $41.49, NAB gained 0.9 percent to $47.46, CBA increased 0.3 percent to $176.12, and ANZ edged up 0.2 percent to $37.53.

Consumer discretionary stocks, however, faced pressure due to concerns that higher interest rates could impact household spending. Temple & Webster fell sharply by 7.6 percent, while Breville declined 2.4 percent. JB Hi-Fi was an exception, posting a modest gain of 0.6 percent.

In the energy sector, New Hope dropped 6.4 percent to $4.96 after reporting a profit of $54.3 million for the six months to January 31, significantly lower than the $340.3 million recorded in the same period a year earlier.

Among smaller companies, AML3D surged 25.9 percent to 17 cents after announcing a $9.9 million order from a US military shipbuilder.

The Australian dollar strengthened, trading at 70.61 US cents, up from 70.15 US cents at 5 p.m. on Monday.

Overall, the S&P/ASX200 closed up 30.9 points, or 0.36 percent, at 8,614.3, while the All Ordinaries rose 26 points, or 0.3 percent, to 8,819.4.

Companies commencing Ex-Dividend Trading Today (ASX 300):

Credit Corp Group Limited

Reece Limited

SEEK Limited