The Australian share market has rallied for a second time this week on the back of a strong lead from Wall Street, as several leading US corporations reported better-than-expected earnings.
The benchmark S&P/ASX200 index on Wednesday gained 109.6 points to finish at a three-week closing high of 6,759.2, a gain of 1.65 per cent.
The broader All Ordinaries climbed 122.2 points, or 1.78 per cent, to 6,975.2.
The Aussie dollar meanwhile had risen against its US counterpart, buying 69.11 US cents, from 68.60 US cents at Tuesday’s close.
It didn’t react as Reserve Bank of Australia governor Philip Lowe gave a speech on Wednesday morning.
“For inflation to return to the 2–3 per cent target range, a more sustainable balance between demand and supply is needed,” Mr Lowe said, warning the RBA was committed to ensure high inflation was temporary.
“Higher interest rates will help achieve this through moderating growth in aggregate demand.
“With the COVID emergency now over, so too is the time for emergency settings of monetary policy.”
The biggest lift on the main ASX200 index was software business Megaport, which lifted 23 per cent to $7.96 after announcing its quarterly results today.
It was a good day for information technology businesses.
That sector rose 3.8 per cent.
Zip Co also posted a big gain, up 12.7 per cent to 66.5 cents per share, while uranium play Paladin Energy was 10.5 per cent higher at 68.5 cents per share.
Health insurer NIB was the worst performer, dropping 3.2 per cent to change hands at $7.28 per share.
The materials sector was up 2.5 per cent, while utilities lifted 1.6 per cent.
Shares in BHP rose 1.4 per cent to be $37.11 each, and Rio Tinto gained 2.2 per cent to $97.80.
