Australian shares rose at Wednesday's close, amid optimism over a possible 90-day extension of the US-China tariff truce.

The S&P/ASX 200 Index rose 0.6% or 51.8 points to close at 8,756.4.

US President Trump will decide whether to extend the US-China tariff truce for another 90 days before it expires in two weeks, Bloomberg reported.

An extension of the tariff truce may see a Trump-Xi meeting in late October, the report added.

"While there is disappointment that nothing material was agreed, the mood seems to be constructive and optimistic about future potential deals," said Kelvin Lam, senior China economist at Pantheon Macroeconomics in London.

On the domestic front, Australia's consumer price index (CPI) rose 0.7% in the June quarter and 2.1% annually, while the monthly CPI increased 1.9% in the 12 months to June, reported the Australian Bureau of Statistics.

The Reserve Bank of Australia has updated a memorandum of understanding (MOU) with the Australian Prudential Regulation Authority to boost coordination and better support financial stability in the country.

In company news, Mineral Resources' (ASX:MIN) fiscal fourth quarter production volume reached 83 million tonnes, up from 61 million tonnes a year earlier. Shares of the company rose past 2% in recent Wednesday trade.

Bowen Coking Coal (ASX:BCB) appointed Mark Holland and Shaun Fraser of McGrathNicol Restructuring as voluntary administrators of the firm, Bowen PCI, Coking Coal One, New Lenton Coal, Lenton Management and Marketing, and Bowen Coking Coal Marketing.

Lastly, IGO's (ASX:IGO) sales revenue rose 15% to AU$126.9 million in the fiscal fourth quarter from AU$110.7 million in the third quarter, helped by higher nickel and copper sales at Nova mine. Shares of the company fell 7% at market close.