Australian Shares Cross 9,000 After Softer Inflation Print

Australian shares crossed the 9,000-point mark for the first time in months after a softer-than-expected inflation reading slashed expectations of another rate hike. The S&P/ASX 200 rose 1.3% to an intraday high of 9,086.1, its strongest level since before the Iran conflict began in February.

Headline inflation slowed to 3.8% in June, below the 4% consensus forecast. Swap markets priced the probability of an August rate increase at just 4%, down from roughly 30% a week earlier. The data, released by the Australian Bureau of Statistics, reinforced the view that the Reserve Bank's tightening cycle has peaked.

Healthcare led the rally. CSL jumped 6.6% after announcing plans for clinical trial work to support its next-generation Horizon 2 manufacturing process. ResMed gained 4% and Ramsay Health Care climbed 3.3%.

Consumer stocks also surged as easing rate concerns lifted sentiment. JB Hi-Fi rose 4.2%, Harvey Norman added 4.8% and Eagers gained 4.4%. Coles and Woolworths both advanced more than 2%.

Energy stocks tracked a rebound in oil prices. Brent crude rose 4.2% to US$87.63 a barrel amid renewed fighting in the Middle East. Viva Energy climbed 3.6%, and Santos added 0.8%.

The banks underperformed the broader market. Commonwealth Bank slipped 0.1%, and Westpac was down 0.3%.

In company news, Rio Tinto rallied 4.7% after reporting a 43% increase in underlying first-half earnings, driven by stronger copper production. Mineral Resources climbed 5.3% after delivering a stronger-than-expected June quarter with improved lithium production and lower costs. Woodside Energy gained 1.1% after June quarter revenue jumped 35% as the company tightened its full-year production guidance. Perpetual slipped 1.8% after rejecting a revised takeover proposal from EQT.

The index closed near its session high, up 1.3% on the day.