Australian shares closed higher on Wednesday, despite concerns over a sharp decline in home loans dragging on bank earnings. The S&P/ASX200 index added 24.2 points, or 0.27%, to 9153.2, while the All Ordinaries gained 23.5 points, or 0.25%, to 9291.3.
The financial sector limited gains as the big four banks retreated following the largest quarterly drop in new home loans since records began in 2002. This slump raised worries about future bank earnings, capping the upside for the broader market.
Miners initially fell after a spike in US inflation triggered a hawkish shift in interest rate expectations. However, metals prices rebounded in the afternoon, fueled by excitement around the upcoming Anthropic initial public offering, which reignited interest in the AI sector.
The Australian dollar weakened, trading at 68.78 US cents, down from 69.26 US cents on Tuesday at 5pm.