Australian shares closed higher on Wednesday, supported by stronger-than-expected US labor market data with increased job openings, a steady unemployment rate, and low layoffs, despite ongoing global uncertainties.

The S&P/ASX 200 Index rose 0.89% or 75.1 points to close at 8,541.8.

The Bureau of Labor Statistics reported US job openings rose to 7.39 million in April, from 7.2 million in March, while analysts expected 7.1 million, Bloomberg reported.

However, job seekers are taking longer to find work, and economists expect further softening in the labor market due to President Trump's tariffs, the report said.

"Optimism brewed on Wall Street overnight after upbeat job data, handed investors a solid reason to stay risk-on," said Hebe Chen, an analyst at Vantage Markets in Melbourne.

On the domestic front, Australia's gross domestic product (GDP) grew 0.2% in the March quarter on a seasonally adjusted, chain volume basis, after 0.6% growth in the December 2024 quarter, according to data released by the Australian Bureau of Statistics.

In company news, PointsBet Holdings (ASX:PBH) said Japanese consumer technology firm Mixi's unit, Mixi Australia, raised its offer to AU$1.20 per share from AU$1.06. Shares of the company rose 11% on close and earlier hit a new two-year high.

Westpac Banking (ASX:WBC, NZE:WBC) subsidiary, Residential Australian Mortgage Securities Financial Group (RFG), agreed to civil penalty proceedings with the Australian Securities and Investments Commission (ASIC) in the Federal Court to resolve allegations of systemic misconduct and unlicensed home loan activity from 2019 to 2023, linked to oversight and governance failures across its franchise network. Westpac's shares rose past 1% at market close.

Lastly, Lovisa Holdings (ASX:LOV) appointed Mark McInnes as Executive Deputy Chairman, effective Wednesday. Shares of the company rose 9% at market close and earlier hit a near one-year high.