The Australian share market has gained ground after the Reserve Bank lifted interest rates in a split decision that raised hopes the central bank might forgo third strike hike in May.
The benchmark S&P/ASX200 index on Tuesday finished up 30.9 points, or 0.36 per cent, to 8,614.3, while the broader All Ordinaries climbed 26 points, or 0.3 per cent, to 8,819.4.
The ASX had been flat around midday but gained ground after the Reserve Bank hiked the cash rate to 4.1 per cent amid concerns about inflation, including from rising fuel prices due to the war with Iran.
Betashares chief economist David Bassanese said the RBA board's 5-4 decision suggested a rate hike at its next policy meeting in May was not a done deal.
Much still depended on the outcome of the first quarter inflation report due in late April, as well as how sustained the recent surge in energy prices proved to be, Mr Bassanese added.
IG analyst Tony Sycamore agreed the lack of unanimity effectively diluted the hawkishness of the hike, and the bar for a back-to-back move in May would require compelling data rather than being a foregone conclusion.
Overseas, Brent crude remained volatile amid the fighting in the Middle East, changing hands at US$102.60 a barrel late on Tuesday afternoon after dropping below $100 briefly overnight.
Six of the ASX's 11 sectors finished higher on Tuesday and five closed lower.
Tech was the biggest mover, dropping 1.3 per cent as Wisetech Global retreated 3.0 per cent and Life360 fell 2.3 per cent.
The heavyweight mining sector added 1.0 per cent, as BHP grew 1.1 per cent to $49.73, Fortescue climbed 1.3 per cent to $19.95 and Rio Tinto advanced 0.3 per cent to $155.18.
Goldminers had a good day as the precious metal changed hands for $US5,034 an ounce, up about $22 from Monday.
Ten of the 12 biggest gainers in the ASX200 on Tuesday were goldminers, including the best performer, Pantoro Gold, which climbed 12.0 per cent.
Evolution rose 3.7 per cent, Westgold climbed 4.9 per cent and West African Resources rose 5.8 per cent to $2.94 as the Burkina Faso-focused gold miner delivered a $567 million net profit after tax for 2025.
In the financial sector, all of the big four banks finished higher.
Westpac added 1.4 per cent to $41.49, NAB climbed 0.9 per cent to $47.46, CBA rose 0.3 per cent to $176.12 and ANZ edged 0.2 per cent higher at $37.53.
Consumer discretionary stocks fell amid the potential for the rate hikes to stretch consumers' pocketbooks, with furniture e-seller Temple & Webster dropping 7.6 per cent and Breville retreating 2.4 per cent, although JB Hi-Fi rose 0.6 per cent.
In the energy sector, New Hope slipped 6.4 per cent to $4.96 after the coalminer declared it had made a $54.3 million profit for the six months to January 31, down from $340.3 million from the same time a year ago.
In small caps, AML3D soared 25.9 per cent to 17 cents after the 3D metal printing company reported receiving a $9.9 million order from a US military shipbuilder.
The Australian dollar was changing hands for 70.61 US cents, from 70.15 US cents at 5pm on Friday.
ON THE ASX:
* The S&P/ASX200 rose 30.9 points, or 0.36 per cent, to 8,614.3
* The broader All Ordinaries gained 26 points, or 0.3 per cent, to 8,819.4
One Australian dollar trades for:
* 70.61 US cents, from 70.15 US cents at 5pm AEDT on Monday
* 112.60 Japanese yen, from 111.78 Japanese yen
* 61.55 euro cents, from 61.37 euro cents
* 53.19 British pence, from 52.96 British pence
* 121.29 NZ cents, from 120.80 NZ cents
