Australian shares recovered from early weakness to close higher on Wednesday, supported by gains in technology and gold stocks as investors welcomed signs of easing tensions in the Middle East.
The S&P/ASX 200 Index rose 48.6 points, or 0.5%, to close at 8,966.3, with eight of the index's 11 sectors finishing in positive territory.
The Information Technology sector led the market higher. WiseTech Global gained 4.1%, Xero advanced 3.5%, TechnologyOne rose 1.3%, and Megaport added 2.1%.
Materials stocks also contributed to the advance, although performance among the major miners was mixed. BHP gained 0.6% to close at a fresh record high, while Rio Tinto and Fortescue fell 1.0% and 1.1%, respectively.
Gold miners were among the strongest performers as bullion prices climbed 0.5% overnight before easing slightly during Wednesday's trade.
Northern Star Resources climbed 2.6%, Newmont rose 2.7% and Evolution Mining added 2.9%.
Investor sentiment was supported after U.S. President Donald Trump indicated the Strait of Hormuz could reopen on Friday as part of a proposed peace agreement between the United States and Iran.
Travel-related stocks also moved higher after the Australian Department of Foreign Affairs and Trade (DFAT) lowered its travel advice for Bahrain, Israel, Kuwait, Qatar and the United Arab Emirates from "Do Not Travel" (Level 4) to "Reconsider your need to travel" (Level 3). Some regions within Israel remain classified as "Do Not Travel".
Web Travel Group surged 11.1%, making it the strongest performer on the benchmark index, while Qantas Airways added 0.2%.
Flight Centre Travel Group rose 5.3% despite downgrading its FY26 underlying profit before tax guidance to between $275 million and $295 million, compared with its previous forecast range of $310 million to $345 million.
The company said the revised outlook reflected temporary conflict-related headwinds, particularly the short-term impact of the Middle East conflict on international leisure travel demand.
Flight Centre also noted that while the emerging peace agreement represented a positive development and potential earnings tailwind, the timing meant it was unlikely to materially benefit fourth-quarter earnings.
Financial stocks were mixed following the Reserve Bank of Australia's (RBA) decision on Tuesday to leave interest rates unchanged.
Commonwealth Bank gained 1.1%, National Australia Bank fell 0.6%, Westpac Banking Corporation slipped 0.5%, and ANZ Group added 0.7%.
Macquarie Group rose 1.2% to a record closing high, extending its recent rally.
Energy was the weakest-performing sector as oil prices extended multi-month lows.
Woodside Energy fell 3.6%, Santos declined 1.2% and Beach Energy lost 3.0%.
Karoon Energy extended losses, dropping 13.4% after the company downgraded production expectations for its Who Dat venture and delayed full restoration of output until the second half of 2027, reducing visibility over near-term production.
Among individual stocks, ARN Media soared 31% after reaching a settlement with former broadcaster Kyle Sandilands. The agreement includes a cash payment of $12.09 million and $1.5 million worth of advertising in exchange for ending his association with the company and resolving all legal proceedings.
On the bond markets, Australian government yields moved lower, with both the 10-year and two-year yields falling 0.7% to 4.769% and 4.446%, respectively.
