Mining and energy stocks lift Australian shares on commodity boost

Australian shares saw a slight increase on Wednesday, driven by the rise in commodity-linked mining and energy stocks following positive pricing. The S&P/ASX 200 index climbed 0.2% to reach 8,942.60 by 0016 GMT, following a 1% loss on the previous day. The resources sub-index, constituting more than a quarter of the Australian bourse in terms of market capitalisation, saw a 0.9% rise.

Strong base metal prices, especially copper, which hit a record high, contributed to the resources sector's gain. Key players BHP, Rio Tinto, and Fortescue experienced significant gains, with BHP and Rio Tinto posting their highest daily increases since late August. Energy stocks also advanced by 1.5% for the third consecutive day, as crude prices surged for the fourth straight session following fresh attacks on US military assets in the Middle East by Iran.

Leading energy companies, Woodside Energy and Santos, surged by 2.5% and 1.6% respectively, hitting near three-week highs for Santos. In contrast, healthcare stocks experienced a decline, with the sector slipping up to 1.8% to a three-week low. Biotech major CSL witnessed its largest one-day drop since late August on its ex-dividend trading day.

Meanwhile, Australia's central bank is set to discuss the possibility of a rate hike at its upcoming policy meeting, with deputy governor Andrew Hauser stating that inflation remains too high and risks are still tilted to the upside. The Reserve Bank of Australia has raised its key cash rate three times this year as escalating oil prices due to the Gulf conflict have driven inflation up through fuel costs.

Projections indicate a 74% likelihood of a quarter-point rate hike at the bank's next meeting on September 29. Further south, New Zealand's benchmark S&P/NZX 50 index managed a slight gain of 0.1%, closing at 13,809.08.