Australian shares rebounded on Wednesday after the release of the domestic federal budget sparked gains in miners, while investors awaited a key inflation report due later in the day for interest rate cues.

The S&P/ASX 200 index rose 0.6% to 7,773.0 points by 0032 GMT.

The benchmark closed 0.3% lower on Tuesday. Globally, investors digested the US producer prices, which increased more than expected in April, as they awaited the consumer inflation report from the world’s biggest economy.

In Sydney, the local government released its annual budget after market hours on Tuesday to tackle inflation and cost of living pressures as it planned to spend billions to cut energy bills and rent.

Treasurer Jim Chalmers promised increased funding for renewable energy, critical minerals, and defence, while also confirming a previously scheduled reduction in income taxes, amounting to an average of A$1,888 per taxpayer annually.

Miners rose by 1.7% on the back of the domestic federal budget’s promise to bolster funding for critical minerals.

The sub-index was on track to record its best day since April 9.

Mining behemoths BHP Group, Rio Tinto and Fortescue gained between 1.3% and 2.9%.

Rate-sensitive financials sub-index advanced by 0.2% with the “Big Four” banks gaining between 0.1% and 0.3%.

Australian shares hit record high; RBA cautious on inflation

Technology stocks tracked their overseas peers higher, rising 0.2%.

ASX-listed shares of Block advanced by 1.1%.

Gold stocks rose by 0.2%, with shares of Genesis Minerals, St Barbara and Evolution Mining up between 0.3% and 1.9%.

Domestic real estate stocks gained 0.5% with shares of Charter Hall Group, Goodman Group rising by 0.6% and 0.5% respectively.

Across the Tasman Sea, New Zealand’s benchmark S&P/NZX 50 index fell 0.1% to 11,607.95 points.