Australian shares have closed at a three-month high following the Reserve Bank's interest rate cut.
The S&P/ASX200 rose 43.5 points, or 0.52 per cent, to 8,386.8, as the broader All Ordinaries gained 38.3 points, or 0.45 per cent, to 8,611.7.
Australian shares rallied for a second day after the Reserve Bank cut the cash interest rate to 3.85 per cent, its lowest level in two years.
While the RBA decision was widely expected, the board's consideration of a 50 basis point cut and other dovish rhetoric had rates markets narrowing their bets for more cuts in 2025.
"The next point of contention after that was whether we're going to get a follow up cut in July or August," IG Markets analyst Tony Sycamore said.
"So a very aggressive, or very dovish repricing in the rates market, and of course that supports the ASX200 as well."
The RBA's next meeting is scheduled for July 8, a day before US Liberation Day tariffs are due to come back into force after their 90-day delay.
"There's still 50 days left, and you've still got at least a dozen major trade deals which need to be negotiated and signed off," Mr Sycamore said.
"So they're running out of time."
The Commonwealth Bank has notched a new intraday all-time high of $176.46, before closing at $174.98, also a record.
The world's most expensive bank stock has surged more than 24 per cent from early April's lows, outperforming the top-200 index, which is up 14.5 per cent from its April 7 close.
Investors looking to pick up a piece of the bank should be wary, Capital.com market analyst Kyle Rodda said.
"There's no fundamental (that is, good) reason for the bank to be this richly valued – although steepening yield curves are a tailwind to the banks' profitability," he said.
"Although the stock could still go higher, at this point, the risk/reward is terribly skewed to the downside."
Nine of 11 local sectors finished in the green, led by a one per cent push in energy stocks, tracking with oil amid reports Israel was planning to attack Iran's nuclear facilities.
Brent crude futures are trading at $US65.60 a barrel.
The materials sector rose 0.6 per cent, with gold miners doing the heavy lifting as the precious metal jumped three per cent to $US3,317 ($A5,140) an ounce.
Perseus Mining was the best performer of the top-200, the West African-focused gold miner rallying 9.7 per cent to $3.72.
Lithium play Liontown Resources took the wooden spoon, the lithium miner down 7.8 per cent as it continued to hand back May's gains.
James Hardie fell more than six per cent after its full-year results disappointed investors and it shrugged off concerns over a controversial takeover plan.
The Australian dollar is buying 64.54 US cents, up from 64.16 at Tuesday's ASX close, with the greenback lower against most major currencies.
ON THE ASX:
* The benchmark S&P/ASX200 index finished Wednesday 43.5 points higher, up 0.52 per cent to 8,386.8
* The broader All Ordinaries gained 38.3 points, or 0.45 per cent, to 8,611.7
CURRENCY SNAPSHOT:
One Australian dollar buys:
* 64.54 US cents, from 64.16 US cents on Tuesday at 5pm
* 92.73 Japanese yen, from 92.70 Japanese yen
* 56.94 Euro cents, from 58.98 Euro cents
* 47.99 British pence, from 47.97 pence
* 108.51 NZ cents, from 108.38 NZ cents