The S&P/ASX 200 Index (ASX: XJO) is pushing higher on Wednesday, despite fresh data showing Australia's economy is losing steam.
At the time of writing, the ASX 200 is up 0.59% to 8,775 points.
The move leaves the benchmark index close to its intraday high of 8,779.8 points and within reach of its recent highs. But under the surface, the session is still mixed, with a smaller group of large stocks doing most of the work.
So why are investors still buying?
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Investors look past the softer GDP numbers
The latest national accounts data showed Australia's economy grew 0.3% in the March quarter.
Annual GDP growth slowed to 2.5%, slightly below economist expectations.
The ABS said growth was held back by subdued household and government consumption, weaker mining production, and a drag from net trade.
Business investment, especially data centre machinery and equipment, was one of the main positive contributors.
The softer growth number has not been enough to knock the ASX 200 lower. Instead, investors appear to be treating it as another sign that interest rates may not need to move higher from here.
Reuters reported that markets showed little reaction to the data, with swap markets pricing only a small chance of another rate hike next month.
Resources are doing the heavy lifting
The stronger session is being led by the S&P/ASX 200 Resources Index (ASX: XJR), rather than a broad lift across the whole market.
BHP Group Ltd (ASX: BHP) shares are up more than 2% to $64.91, while Rio Tinto Ltd (ASX: RIO) shares are also trading more than 2% higher at $195.84.
Sandfire Resources Ltd (ASX: SFR) shares have risen as much as 3.2% to $20.64.
The buying comes as copper futures trade near record highs, after a strong run earlier in the week. That has given investors another reason to move back into the big miners, even as the domestic economy shows signs of slowing.
Gold miners are also stronger. Northern Star Resources Ltd (ASX: NST) shares are up around 6.2% to $22.34, extending yesterday's 13.6% rally.
Uranium names are adding to the move, with Paladin Energy Ltd (ASX: PDN) shares gaining 10.2% to $11.69, Deep Yellow Ltd (ASX: DYL) shares lifting 7.1% to $1.62, and Boss Energy Ltd (ASX: BOE) shares climbing 7.5% to $1.38.
Not every ASX 200 stock is joining in
Another key takeaway is that today's gain isn't being shared evenly across the market.
Earlier in the session, only 77 of the ASX 200's 200 stocks were trading in positive territory. That tells us the index is moving higher, but the buying is still concentrated in a smaller group of large resource and energy names.
Commonwealth Bank of Australia (ASX: CBA) shares are up 0.4% to $166.36, which is helping support the benchmark. But several other large names are moving the other way.
CSL Ltd (ASX: CSL) shares are down around 1.2% to $91.46, while the S&P/ASX 200 Information Technology Index (ASX: XIJ) is also under pressure.
Xero Ltd (ASX: XRO) shares are down 3.8% to $83.70, and WiseTech Global Ltd (ASX: WTC) shares are 2.5% lower at $41.15.
