Australian stocks close lower after core inflation beats expectations, rate-hike bets rise; S&P/ASX 200 drops, check top gainers and losers

Australian shares gave up early gains on Wednesday to close marginally lower. The benchmark ‌S&P/ASX 200 ‌index finished 0.1% lower at 8,933.90 points after rising as much as 0.4% earlier in the session. The movements in the sharemarket were triggered by hotter-than-expected underlying inflation data that raised expectations for an interest rate hike as early as next week.

The S&P/ASX 200 closed down just 7.70 points Wednesday to 8,933.90. According to the ASX website, the bottom-performing stocks in this index were LIFE360 INC. and CATAPULT SPORTS LTD, down 7.61% and 6.84%, respectively.

Data ‌showed that the trimmed mean consumer price index, a policy-relevant measure of core inflation, rose 0.9% in the fourth quarter from the quarter before, topping economists' forecasts of a 0.8% increase.


This signalled underlying price pressures remain entrenched, adding to the Reserve Bank of Australia's (RBA) case for maintaining a restrictive policy stance. The central bank, which last eased its policy in August 2025, is now confronting ‍the possibility of a rate hike at its February 2–3 ‍meeting as inflation pressures persist.

Swaps now imply over a 70% chance of a hike in the key cash rate next week, from around 60% before the data, according to news agency Reuters. Financials fell 0.3% on Wednesday, with ‍Westpac and ANZ slipping 0.2% and 0.5%, respectively.

Financial stocks could see an early boost from net interest margin expectations if the ‍hike is ⁠viewed as measured, though gains ⁠may be limited as attention turns to credit demand, funding costs and growth risks, said Chen.

Capping losses in the benchmark stock index, miners climbed as much as 1.5% to hit a record high, propelled by strong copper prices. Rio Tinto and BHP advanced 2.4% and 1.7%, respectively. Energy stocks rose 2.3%, with Santos gaining 3%, while Woodside jumped 2.7% after reporting better-than-expected fourth-quarter revenue.

ASX 200: Check top gainers and losers

The S&P/ASX 200 recorded notable movements across individual stocks, with Deep Yellow Limited (DYL) leading the gains. The uranium producer closed at $2.590, up 25 cents, marking a 10.683 per cent increase. Silex Systems Limited (SLX) also advanced strongly, rising 53 cents, or 7.412 per cent, to finish at $7.680. Paladin Energy Ltd (PDN) gained 71 cents, or 5.366 per cent, to close at $13.940, while NexGen Energy (Canada) Ltd (NXG) added 82 cents, up 4.632 per cent, ending the session at $18.520. Capstone Copper Corp. (CSC) rounded out the top five gainers, climbing 71 cents, or 4.418 per cent, to $16.780.

On the downside, Life360 Inc. (360) led the declines, falling $2.350, or 7.613 per cent, to $28.520. Catapult Sports Ltd (CAT) dropped 27 cents, down 6.836 per cent, closing at $3.680. Temple & Webster Group Ltd (TPW) declined 91 cents, or 6.623 per cent, to $12.830, while DroneShield Limited (DRO) slid 23 cents, down 5.503 per cent, finishing at $3.950. AUB Group Limited (AUB) completed the list of top decliners, shedding $1.510, or 4.733 per cent, to close at $30.400.

Sectors ended mix

According to ASX website, sectors ended mixed. 9 of 11 sectors were lower along with the S&P/ASX 200 Index. Energy was the best-performing sector, gaining +2.33% and +6.13% for the past five days.