Australian shares closed higher on Tuesday but retreated from session highs after the Reserve Bank of Australia (RBA) delivered its first interest rate increase since 2023, marking the first rate hike by a major economy in the current cycle.
The S&P/ASX 200 Index rose 78.5 points or 0.9% to 8,857.1, with 10 of 11 sectors finishing in positive territory.
The RBA raised the cash rate by 25 basis points to 3.85% in a unanimous decision.
Despite the hike, the interest rate-sensitive technology sector recorded some of the strongest gains. WiseTech Global rose 1.7%, TechnologyOne added 1.4%, and Xero advanced 2.6% after news that its Melio product is expected to reach profitability earlier than anticipated.
Mining stocks provided a key pillar of support as gold prices rebounded from their steepest slump in more than a decade.
Northern Star gained 1.1%, Newmont advanced 5.6%, and Evolution Mining gained 4.2%.
Credit Corp posted steep losses, plunging 16.7% after investors reacted negatively to its first-half results.
NRW Holdings rose 4.8% after securing three new civil contracts worth a combined $270 million, strengthening its project pipeline in Western Australia and the Pilbara region.
Telix Pharmaceuticals fell 2.6% after chairwoman Tiffany Olson resigned after eight months in the role.
On the bond markets, 10-year and 2-year rates were up 0.1% and 1.1% to 4.283% and 4.257%, respectively.
