The Australian sharemarket rebounded on Wednesday, closing at a two-week high as improving risk sentiment lifted equities, amid signals of a potential de-escalation in the United States-Iran conflict.
Investor confidence strengthened after U.S. President Donald Trump announced on Tuesday (Wednesday AEST) that an American naval operation to guide ships through the Strait of Hormuz would be paused, in an effort to encourage Iran to agree to a peace deal.
The S&P/ASX 200 finished 113.1 points, or 1.3%, higher at 8,793.6, with five of the 11 sectors closing in positive territory.
The Materials sector led the advance, supported by strong gains among major miners. BHP rose 3.1%, Rio Tinto added 2.3%, and Fortescue Metals gained 3.2%.
Gold miners were also mostly higher as bullion prices strengthened. Evolution Mining climbed 2.2%, Newmont rose 2.1%, while Northern Star slipped 0.1%.
Financial stocks recorded solid gains, with Commonwealth Bank advancing 3%, National Australia Bank rising 2.8%, Westpac lifting 3.5%, and ANZ closing 3.1% higher.
In contrast, the Energy sector lagged as oil prices declined. Woodside Energy fell 2.7%, Santos slipped 0.3%, Beach Energy dropped 3%, Ampol eased 1.2%, and Viva Energy ended 3.3% lower.
In corporate developments, DigiCo surged 25% after announcing the sale of its Chicago data centre site for US$750 million (A$1.046 billion). The company is shifting focus away from North America to expand its flagship Sydney facility.
JB Hi-Fi was the weakest performer on the index, plunging 6.3%, after chief executive Nick Wells warned of mounting cost pressures and supply constraints, saying, "As we enter the important end of financial year trading period, in the technology categories we are seeing significant supplier component related cost increases and stock availability shortages, along with heightened competitive activity."
In fixed income markets, the yield on the 10-year government bond was little changed at 4.956%, while the two-year yield edged 0.4% lower to 4.67%.
