Australian stocks rose on Wednesday as US President Trump signaled that his tariff plans would likely take a lenient approach.

The S&P/ASX 200 Index rose 0.7% or 56.5 points to close at 7,999.

Trump said Tuesday he preferred fewer tariff exceptions but would "probably be more lenient than reciprocal," adding that a reciprocal approach would be "very tough for people," Bloomberg reported.

The elevated concerns in markets eased to a certain extent from Trump's comments.

However, investors are still cautious about the country's economic growth, the report added.

"Until there's more certainty on the tariff and macro front, sentiment and confidence remain vulnerable," said Bret Kenwell at eToro.

On the domestic front, Australia's consumer price index rose 2.4% in the 12 months to February, following a 2.5% increase in the year to January, the Australian Bureau of Statistics reported.

The value of Australia's seasonally adjusted engineering construction work rose 1.5% to AU$35.71 billion in the December 2024 quarter compared with the September 2024 quarter, data from the Australian Bureau of Statistics showed.

In company news, Endeavour Group (ASX:EDV) is set for a major overhaul under new executive chairman Ari Mervis, who is leading a comprehensive review of the company's operations, according to a report by the Australian Financial Review. Shares of the company rose 1% at market close.

Hearts and Minds Investments (ASX:HM1) said its revaluation of the holding value of Opthea (ASX: OPT) in its portfolio to AU$0.20 per share, will negatively impact its net asset value by about 1.6% or AU$0.056 per share.

Lastly, Paladin Energy (ASX:PDN) has withdrawn its production guidance for the fiscal year ending June 30 as recent unseasonal heavy rainfall has resulted in water ingress into the open mining pits of its Namibian mine. Shares fell 12% at market close.