The Australian sharemarket is tracking its best session in two months on Tuesday as investors await a widely expected interest rate rise by the Reserve Bank of Australia this afternoon.

The S&P/ASX 200 was up 104.80 points, or 1.2 per cent to 8883.40 at 12pm AEDT, with 10 of the 11 sectors up. A close by this margin would be the strongest since late November when the index rose 1.3 per cent.

Sentiment was buoyed by a global rebound in equities led by Wall Street after data showed that US manufacturing activity expanded the most since 2022 in January on strong growth in new orders. At 2.30pm AEDT, investors will be glued to whether the RBA lifts interest rates by 25 basis points as is widely expected – such a move would make Australia the first country to tighten this cycle.

Gains on the ASX were led by miners as gold rebounded from its biggest slump in more than a decade, driven by news that US President Donald Trump would nominate Kevin Warsh to lead the US Federal Reserve. Newmont, which fell 10 per cent on Monday, was up 5.7 per cent, Evolution Mining 5.8 per cent and Northern Star 3.5 per cent.

BHP and Commonwealth Bank were both hovering around a market cap of almost $256 billion each, with shares up 1.8 per cent and 0.7 per cent respectively. CBA also flagged a $68 million pre-tax provision ahead of its half-year results next week. Westpac, ANZ and National Australia Bank shares increased by about 0.5 per cent.

Tech stocks were back in favour on Tuesday after falling 8 per cent in the past month. NextDC rose 2.3 per cent and Codan by 2.8 per cent, while Xero rose 3.7 per cent on news its Melio product was expected to become profitable ahead of expectations.

Stocks in focus

Neuren Pharmaceuticals tumbled 10.2 per cent as its licensee Acadia Pharmaceuticals received a so-called negative trend vote from European regulators on its marketing authorisation application to treat Rett syndrome.

NRW Holdings gained 4.5 per cent after it won three new civil contracts worth a combined $270 million, strengthening its pipeline in Western Australia and the Pilbara.

Telix Pharmaceuticals slid 3.3 per cent as chairwoman Tiffany Olson resigned after just eight months in the role.

Credit Corp dived 13.7 per cent on disappointment in its first-half results, which Morgans viewed as a mixed bag with US purchasing guidance lowered.