AU Evening Wrap: Australia Shares Gain 0.5% on Lower-Than-Expected Inflation

Australia's $S&P/ASX 200 (.XJO.AU)$ closed 0.5% higher at 7819.6 after lower-than-expected inflation stoked optimism over central bank interest-rate cuts. The benchmark index was flat until the release of data showing consumer prices rose by 3.4% in the 12 months to February, compared with the 3.5% expected by economists. The ASX 200 finished less than 28 points short of its closing record.

Bank stocks jumped, with $National Australia Bank Ltd (NAB.AU)$, $ANZ Group Holdings Ltd (ANZ.AU)$ and $CommBank (CBA.AU)$ putting on between 0.7% and 1.2%. $Westpac Banking Corp (WBC.AU)$ finished 0.9% lower after outlining what some analysts said looked to be higher FY 2025 technology investment.

Consumer-related stocks also finished higher, with retailers $Wesfarmers Ltd (WES.AU)$, $JB Hi Fi Ltd (JBH.AU)$ and $Harvey Norman Holdings Ltd (HVN.AU)$ putting on between 0.7% and 1.8%.