03.02.202606:04:24UTC+00Australian Shares Rebound Despite RBA Rate Hike

The S&P/ASX 200 experienced a 0.9% increase, closing at 8,857 on Tuesday, effectively ending a four-day downward trend. This rise was primarily fueled by the robust performance of materials stocks, which counterbalanced the challenges posed by the Reserve Bank of Australia's (RBA) recent interest rate hike. Prominent mining entities, including BHP Group, which climbed by 1.4%, Rio Tinto, which advanced 1.9%, and Fortescue Metals, which edged up by 0.5%, were instrumental in this recovery. Additionally, gold mining companies such as Newmont Corporation, Evolution Mining, and Northern Star Resources saw their shares ascend between 1.1% and 5.6%, bolstered by the overnight resurgence in the prices of copper, silver, and gold.

The financial sector also emerged as a significant winner, with Commonwealth Bank of Australia (CBA) increasing by 1.4% and Westpac Banking Corporation rising by 1.0%, despite the backdrop of the RBA's monetary tightening measures. The central bank raised its cash rate by 25 basis points to reach 3.85%, marking the first rate hike since November 2023. This move establishes the RBA as the first major central bank to shift from post-pandemic monetary easing back to tightening. The unanimous decision came on the heels of data revealing that inflationary pressures accelerated in the latter half of 2025 and are projected to remain above the target range for an extended duration.