ASX 200 Soars as Tech Stocks Outpace RBA Rate Hike
The Australian market closed higher on Tuesday, driven by a surge in technology stocks. The S&P/ASX 200 index rose 29.6 points, or 0.34%, to finish at 8,709.3.
The Reserve Bank of Australia (RBA) hiked the official cash rate to its highest level in about 15 years, reaching 4.60%. The RBA noted that inflation remained elevated and some upside risks were materializing.
Tech stocks led the market, with information technology surging 4.6% and materials rising 1%. Utilities fell 0.8%, and energy lost 0.7%. Codan, a drone communications and metal detector maker, soared about 21% to a record high after issuing a bullish trading update.
RBA Governor Michele Bullock said the board had weighed several downside risks before deciding to raise rates. She noted that bond yields were rising quickly but did not appear disorderly.