Australian shares ended modestly higher Wednesday, tracking Wall Street gains, as investors cheered US President Donald Trump's $500 billion artificial intelligence investment policy.

The S&P/ASX 200 Index rose 0.3% or 27.4 points to close at 8,429.80.

Asian stocks climbed as tariff concerns were momentarily quashed by Trump's investment plan, Bloomberg reported.

However, investors will have to face tough decisions in the coming months as the Trump administration is set to implement major policy changes, Bloomberg added.

On the domestic front, Australian economic activity signaled sustained momentum last month, but growth is likely to remain "lackluster" for the rest of the year, according to the Westpac-Melbourne Institute Leading Index.

The number of dwellings commenced in Australia rose 4.6% to 43,247 units between the September and December 2024 quarters, data from the Australian Bureau of Statistics showed.

In company news, Qantas Airways (ASX:QAN) shares surged, driven by falling oil prices, following US President Donald Trump's energy policy shift. Shares of the airline rose nearly 4% at market close and earlier hit an all-time high.

Woodside Energy Group (ASX:WDS) logged a record production of 193.9 million barrels of oil equivalent (MMboe) in 2024, up 4% from 187.2 MMboe in 2023.

The company also decided to delay the final investment decision on the H2OK liquid hydrogen project in Oklahoma as it prioritizes the Beaumont New Ammonia project in Texas. Shares of the company fell nearly 2% at market close.

Paladin Energy (ASX:PDN) reported the highest monthly production volumes in December 2024 from its Langer Heinrich mine in Namibia since the restart of commercial production in March 2024. Shares of the company rose 10% at market close.