FX.co ★ ASX 200 Up 0.5% at Close

Australia’s ASX 200 climbed 45 points, or 0.5%, to close at 8,892 on Thursday, rebounding from a muted finish in the previous session. The move came as investors digested the US Federal Reserve’s decision to keep interest rates on hold and its indication of fewer policy meetings next year, prompting a reassessment of the future rate path.

Financials, energy minerals, and communications stocks led the advance, offsetting declines in retail, manufacturing, and technology. Sentiment was capped by caution ahead of official PMI data from China, Australia’s largest trading partner, due over the weekend.

On the domestic front, hotter-than-expected September inflation reinforced expectations that the Reserve Bank of Australia will lift the cash rate again at next week’s meeting, after four increases earlier this year. The four major banks gained between 1.9% and 2.3%, while Lynas Rare Earths rose 4.2%, Charter Hall Group added 3.3%, and Bendigo & Adelaide Bank advanced 2.5%.

Weighing on the index, BHP Group slipped 0.9%, while Wesfarmers dropped 4.0%, Woolworths Group lost 3.3%, and Ramsay Health Care declined 1.5%.