Australia's share market has broken multiple records as investor confidence surges on hopes for an imminent US-Iran peace deal.
The S&P/ASX200 closed at a record-high 9,227.8 on Wednesday, up 82 points, or 0.9 per cent, as the broader All Ordinaries rose 93.5 points, or one per cent, to 9,405.4.
The top 200 also hit a fresh intraday peak of 9,230, beating February's high-water mark set days before US-led attacks on Iran sparked major conflict and the biggest oil supply disruption in recent history.
Brent crude prices fell to three-week lows of $US78.11 a barrel on reports the US and Iran were close to a deal to end fighting and fully reopen the Strait of Hormuz shipping route.
While the reports were encouraging, investors appeared to be betting into favourable news while ignoring the bad, Moomoo market strategist Michael McCarthy said.
“The market is reacting on the upside, but not the downside, and it’s especially true in the US,” Mr McCarthy told AAP.
“The underlying sentiment remains very strong, very optimistic, very bullish.”
The local exchange had also been bolstered by resilient household spending figures and a softening interest rate outlook following lower-than expected inflation in June.
Mining stocks led the charge on Wednesday as traders mulled a brighter global growth outlook.
BHP and Rio Tinto rallied as copper prices neared record highs, while iron ore futures eked a minor gain as they struggled to rebound from three months of selling pressure.
Gold stocks were some of the best performers, as the precious metal rose 2.5 per cent to four-week highs of $US4,176 ($A5,924) an ounce.
An early sell-off in the major banks had eased by the close, with the financials sector dipping 0.4 per cent after topping its own intraday best during the session.
Energy stocks lagged, the segment down 2.2 per cent as Woodside, Santos and refinery operators Ampol and Viva lost ground.
Local investors would look to financial results as August earnings season gathered pace and there were signs momentum in miners could continue, Vantage senior market analyst Hebe Chen said.
“Resources enter the season from a position of strength, while banks still face margin pressure, retailers are dealing with cautious consumers," Ms Chen told AAP.
"Higher funding and operating costs mean guidance will matter more than the headline profit number."
As for the ASX200's trajectory, it still faced multiple pressure points in coming weeks, including inflation and the Reserve Bank’s interest rate path, she said.
“Globally, geopolitical tensions may be easing but are far from resolved,” Ms Chen said.
The Australian dollar is buying 70.49 US cents, up from 70.14 US cents on Tuesday at 5pm AEST, as metals prices improved and investors sold down the safe-haven greenback.
ON THE ASX:
* The S&P/ASX200 rose 82 points, or 0.9 per cent, to 9,227.8
* The broader All Ordinaries advanced 93.5 points, or 1.0 per cent, to 9,405.4
One Australian dollar trades for:
* 70.49 US cents, from 70.14 US cents at 5pm AEST on Tuesday
* 111.11 Japanese yen, from 110.60 Japanese yen
* 61.06 euro cents, from 60.96 euro cents
* 52.35 British pence, from 52.24 pence
* 119.99 NZ cents, from 119.58 NZ cents
