Australian Market Soars to Record High Amid Global Risk-On Rally

The Australian stock market hit a record high on Wednesday, climbing over 0.9% to 9227.8 points.

This surge marks an impressive 4% gain for the local market in the past month and is attributed to several unique factors.

According to UBS strategist Richard Schellbach, the Australian market benefits from its limited exposure to volatile artificial intelligence stocks, which has attracted Asian investors and boosted sentiment.

The market also found comfort in the potential US-Iran de-escalation, with claims of a Strait of Hormuz deal sending oil prices below $80 a barrel.

Additionally, the Reserve Bank of Australia's recent dovish tilt reassured the market, leading to significant rises in consumer and bank stocks as investors anticipate rate increases are ending.