What sparked optimism in the Australian market recently?

Recent optimism in the Australian stock market was largely driven by the release of softer-than-expected consumer price index (CPI) data. The CPI report, which indicated that inflation was lower than anticipated for the fourth quarter, led investors to speculate that the Reserve Bank of Australia (RBA) might soon implement interest rate cuts. The data showed that inflationary pressures were easing, which raised expectations that the RBA would take action to support economic growth, potentially by reducing the cash rate. Analysts now predict that the RBA could cut rates by 25 basis points as soon as February 2025. This speculation has provided a significant boost to the Australian stock market, especially in sectors that are sensitive to interest rates, such as real estate and consumer discretionary stocks. If the RBA indeed cuts rates, it could further stimulate consumer spending and investment, driving further growth in the Australian economy and improving investor sentiment.

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Asia Stocks Rebound: DeepSeek Concerns Ease, Australian Market Gains