The Australian share market closed higher on Tuesday, with the ASX 200 reaching a six-week high. Gains were driven by strong performances in the financial and consumer discretionary sectors, while utilities underperformed.
The S&P/ASX 200 index closed 55 points or 0.7% higher 8,402.4.
Seven of the 11 sectors on the ASX 200 closed higher. Financials led the charge, with Macquarie Group gaining 0.8%, ANZ rising 2%, NAB up 2.1%, and Westpac adding 1.4%.
The consumer discretionary sector also posted solid gains, with Wesfarmers increasing by 1.6% after announcing a wind-down of it's online retail business Catch, while Domino’s Pizza Enterprises added 1%, and JB Hi-Fi surged 3.3%.
In contrast, utilities struggled, as Meridian Energy fell 2.8%, and Origin Energy declined 2.3%.
Reports suggesting that President Trump would scale back aggressive tariff measures on his first day in office helped lift market sentiment.
This optimism was further bolstered by positive quarterly results from key Australian companies, particularly in the mining sector.
Liontown Resources popped 11.9% after reporting a significant increase in production. The company achieved a 215% quarter-on-quarter rise in spodumene concentrate output, reaching 88,683 dry metric tonnes (dmt) for the three months ending 31 December, driven by the ramp-up at its Kathleen Valley Lithium Operation.
HUB24 delivered impressive results, with platform funds under administration (FUA) reaching A$98.9 billion in the second quarter of FY25, a 36% increase compared to the previous corresponding period.
On the bond markets, yields softened across the curve. The 10-year rate eased by 0.8% to 2.41%, while the 2-year rate dropped 0.9% to 3.888%.