Global Markets | Australian shares hit record high as investors focus on strong earnings, shrug off hot CPI

Australian shares hit a record high on Wednesday as strong blue-chip earnings spurred optimism, with the market largely shrugging off a hotter-than-expected inflation print that upped bets of a rate hike at the central bank's next meeting.

The S&P/ASX 200 index ‌closed 1.2% ⁠higher at ⁠9,128.30 points, having touched a record high of 9,130.30 points earlier in the session. The index had ended largely unchanged on Tuesday.

Consumer prices rose by more than expected in January and core inflation hit the highest in over a year, leading investors to raise their bets of a quarter-point rate hike in May to 80% from 76% before the data.


The benchmark briefly trimmed gains after the ⁠data, but recovered ‌as robust earnings momentum drew investors in.

Australia's top grocer Woolworths jumped 13% to a 17-month high after it reported a first-half ⁠profit above estimates, and raised full-year guidance. The broader consumer staples index climbed 5.7%.

Technology stocks recovered after three days of losses, rising 5.9%. Sector giant WiseTech gained more than 10% on easing concerns over AI integration after it announced around 2,000 AI-workflow-related job cuts.

Both Woolworths and WiseTech were among the top gainers on the benchmark.

"The market is focused on earnings today, not CPI. Woolworths, WiseTech and Fortescue are large index weights and all ‌delivered supportive updates, which is anchoring sentiment," said Hayden Beamish, portfolio manager at Endeavor Asset Management.

Miners rose 2.8% to hit a record high. The world's fourth-largest iron ore ⁠miner, Fortescue, gained 4.7% after reporting a 23% jump in half-year profit and record iron ore shipments.

Financials rose 0.6%, backed by gains of between 0.1% and 1.5% in the "Big Four" banks.

"The ASX 200 is dominated by banks, miners and large caps that can absorb or even benefit from higher rates. A hot CPI print matters more for housing and consumer discretionary than it does for the index heavyweights," said Beamish.

New Zealand's benchmark S&P/NZX 50 index fell 0.1% to 13,525.58 points.