The Australian sharemarket had its best day since 2022 after the quarterly inflation data ruled out expectations of an interest rate rise by the Reserve Bank next week.

The benchmark S&P/ASX 200 Index jumped 139.1 points, or 1.8 per cent, to a fresh record of 8092.3 at the closing bell, with all 11 sectors finishing in the green. That was the biggest percentage increase since November 2022. The All Ordinaries also rose 1.8 per cent.

Data released near midday showed that trimmed inflation – the RBA’s preferred measure of inflation – on an annual basis cooled to 3.9 per cent in the June quarter from 4 per cent. For the quarter, core inflation came in at 0.8 per cent, down from 1 per cent.

‘Sigh of relief’

Tribeca hedge fund manager Jun Bei Liu said Wednesday’s softer than expected inflation figure was a “sigh of relief” for investors as it took another rate rise by the RBA “off the table”.

“It’s been quite a broad-based rally, although the consumer-centric companies have been rallying especially aggressively,” Liu said.

Consumer discretionary stocks were among the best performers, climbing 2.3 per cent. Wesfarmers advanced 2.8 per cent to $73.65, JB Hi-Fi firmed 4.3 per cent to $69.65 and Harvey Norman jumped 5.3 per cent to $4.79.

The big four banks also jumped, paced by Commonwealth Bank which shot past the world’s biggest miner BHP to become the country’s most valuable publicly listed company. The lender’s market capitalisation hit a record high of $230 billion on Wednesday, after rallying 1.1 per cent to $137.49.

Among the other major banks, Westpac advanced 2.5 per cent to $29.80, National Australia Bank finished 1.8 per cent higher ato $38.58 and ANZ added 1.9 per cent to $29.05.

Elsewhere on the ASX, energy stocks tracking a recovery in the crude oil price. Oil rose for the first time in four sessions on heightened geopolitical tensions to trade near $US79 after Hamas political leader Ismail Haniyeh was targeted and killed in Tehran on Wednesday

Woodside Energy rallied 2.7 per cent to $27.60 and Santos added 2 per cent to $7.99.

The materials sector also recorded sharp gains, climbing 2.2 per cent. It comes as mining giant Rio Tinto firmed 2.5 per cent to $117.48 after it recorded a $US5.75 billion ($8.9 billion) half-year profit.

BHP climbed 1.8 per cent to $42.30 and Fortescue Metals rose 3.2 per cent to $18.87, following Tuesday’s 10 per cent tumble.

On Wall Street, the US giants pulled back overnight amid nervousness before Microsoft reported its quarterly results. Microsoft reported its results shortly after the closing bell, sending its shares lower in after-hours trading. While results were in line with expectations, revenue from its Cloud business missed slightly.

Stocks in focus

Origin Energy slipped 1 per cent to $10.49 after the electricity and gas supplier revealed in its quarterly update a jump in coal costs that was double what some analysts expected.

Regional Express announced that it had entered voluntary administration. Rex Airlines flights between major airports have been cancelled, with the company’s domestic fleet of Boeing 737 aircraft all grounded. The shares were suspended from trading on Monday.