Australian Stocks Rally on Cooler Inflation Data, August Hike Odds Plummet

Australia's stock market made significant gains after June-quarter inflation data came in lower than expected. The S&P/ASX 200 index rose by 1.3% to reach its highest level since early March, at 9,060.

The better-than-expected inflation rate led traders to significantly reduce the likelihood of an August interest rate hike from the Reserve Bank of Australia (RBA). Implied odds fell to about 3% from around 20%, while November odds were trimmed to 34% from 55%.

Banks and miners led the charge, with Rio Tinto experiencing a boost following its strong half-year results and increased interim dividend. CSL also rose as it announced plans for a new manufacturing process aimed at increasing immunoglobulin output.