Australian shares edged higher on Wednesday, even as concern over artificial intelligence-related spending and a potential hawkish direction from the US Federal Reserve sent stocks downwards on Wall Street.
The S&P/ASX 200 Index rose 0.24%, or 21.40 points, to close at 8,808.40.
Overnight, the S&P 500 fell 1.4%, and the Nasdaq Composite decreased 2.2%. Gold declined for a second day as spot gold fell over 1% to under $4,070 per ounce.
Brent crude oil futures fell to around $76 per barrel as more oil tankers moved through the Strait of Hormuz and talks continue between the US and Iran.
On the domestic front, Australia's consumer price index rose 4% on year in May, down from the 4.2% rate posted in April, data from the Australian Bureau of Statistics showed. On a monthly basis, the CPI fell 0.1% in seasonally adjusted terms. Trimmed mean annual inflation was 3.6% in the 12 months to May, up from 3.4% in the 12 months to April.
Australia's total engineering construction work done rose 7.1% to AU$38.87 billion in the March quarter, seasonally adjusted, up from AU$36.29 billion in the previous quarter, the Australian Bureau of Statistics reported.
In company news, Tasmea (ASX:TEA) struck a deal to acquire JPS Group, an integrated services provider to the energy sector, for up to AU$75 million. The deal is anticipated to close on or around Aug. 1. It also affirmed its fiscal 2026 underlying net profit after tax guidance of AU$72.5 million on a standalone basis. The firm's shares reached their all-time peak earlier in the day.
Baby Bunting Group (ASX:BBN) now expects fiscal second-half pro forma net profit after tax of between AU$11 million and AU$12 million following softer-than-expected trading conditions through the fourth quarter, below its previously guided range of AU$12.5 million to AU$14.5 million. Its shares fell 10% on close.
Lastly, Atlas Arteria (ASX:ALX) said its independent directors are reviewing their response following the extension of IFM Investors' takeover offer after the bidder increased its voting power above 50%.