AU Evening Wrap: Australia Shares Rise 0.4% as Rate-Rise Fears Ease

The $S&P/ASX 200(.XJO.AU)$ closed 0.4% higher on Wednesday, as strength in bank and consumer stocks helped to offset further weakness in commodity prices. The benchmark index recovered from a lower open and added to its early gains after the publication of GDP data that showed the Australian economy grew less than expected in the March quarter, which economists saw as reducing the likelihood of further interest rate hikes.

Banks, including $National Australia Bank Ltd(NAB.AU)$, $ANZ Group Holdings Ltd(ANZ.AU)$ and $CommBank(CBA.AU)$, put on gains of between 0.7% and 0.8%, while shares of discretionary retailers and supermarkets also rose.

Mining giant $Rio Tinto Ltd(RIO.AU)$ has announced plans to invest $143 million in a new research and development facility in Western Australia, as it seeks to advance its low-carbon ironmaking process. The BioIron Research and Development Facility will be located near Perth and will build on the company's trials of its ironmaking process at a pilot plant in Germany. The BioIron process uses raw biomass and microwave energy instead of coal to convert iron ore into metallic iron, with the potential to reduce carbon emissions by up to 95% compared with traditional blast furnaces.