At closing bell, the benchmark S&P/ASX200 index was up 22.30 points, or 0.31%, to 7,127.68. The broader All Ordinaries index added 19.26 points, or 0.26%, to 7,381.13.
The top performing stocks in S&P/ASX200 index were CHALLENGER and BRAMBLES, up 5.6% and 5.1% respectively. The bottom performing stocks in S&P/ASX200 index were POINTSBET and NOVONIX, down 7.7% and 6.5% respectively.
Market risk sentiments were muted on concerns of another half-point rate hike in September after Australian wage growth rose at the fastest pace in almost eight years last quarter as red-hot demand for labour drove unemployment to generational lows.
The central bank has already raised interest rates by 175 basis points to 1.85% since May, and flagged more hikes ahead. Markets are wagering rates could rise as far as 3.5% by April next year given inflation has shot to a 21-year high of 6.1% and is expected to top 7% in coming months.
Shares of materials and resources climbed up on strong base metal prices. Sector majors BHP Group and Rio Tinto, both rose 0.8%.
Healthcare stocks dipped, dragged by a 1.3% fall in heavyweight CSL after the Australian biotech giant posted a drop in annual profit due to declining donations of blood plasma, the key ingredient of its products, and flagged higher staffing costs as collection volumes returned to pre-pandemic levels.
Energy stocks were also lower. Santos led decline with loss of 2.4% despite a surprise announcement to move ahead with developing a US$2.6 billion Alaskan oil project, and posting a record first-half profit.
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ECONOMIC NEWS: The Australian Bureau of Statistics wage data released on Wednesday showed that wage price index (WPI) rose 0.7% in the June quarter. The annual rate picked up to 2.6%, from 2.4%. The private sector saw growth of 2.7%, while the public payroll trailed at 2.4%. The jobless rate has fallen steeply to the lowest in 48 years at 3.5%, while record vacancies point to still-strong demand for workers.
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