Australian shares closed higher on Thursday, tracking Wall Street gains after the US Federal Reserve decided to leave borrowing costs unchanged on Wednesday even as it flagged elevated inflation.
The S&P/ASX 200 Index rose 44.50 points, or 0.5%, to close at 8,891.80.
Overnight in the US, the S&P 500 and the Nasdaq Composite both gained 0.3%, while the Dow Jones Industrial Average edged 0.2% higher. US Fed Chairman Kevin Warsh expressed optimism over bringing inflation back down to its 2% target without jeopardizing the economy's growth or pushing unemployment higher.
On the ASX, consumer discretionary and staples stocks continued to struggle after Wednesday's data showed Australian inflation accelerating in September, generating fears of a fifth rate hike this year. Mining stocks were lower as prices for precious metals declined following the Fed's rate decision. Banks and real estate firms led gainers, with the communication services and health care sectors also joining the rally.
In economic news, Australia's export price index, which tracks changes in the prices of merchandise and goods exported from the country, increased 1.4% in the September quarter while the import price index declined 1.1%.
On the corporate front, Mesoblast (ASX:MSB) shares ended 23% higher after the company said its fiscal first-quarter net revenue grew 44%, while net operational cash spend improved 86%.
Star Entertainment Group (ASX:SGR) accepted a AU$260 million penalty handed down by the Australian Federal Court in relation to anti-money laundering proceedings brought against the company's subsidiaries. Its shares closed over 5% higher.
Meanwhile, shares of Wesfarmers (ASX:WES) declined 4% after it said sales growth for its Bunnings Group unit has moderated since the second half of fiscal 2026, with lower sales across seasonal categories and the commercial segment weighing on overall performance.
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