Financial stocks advanced nearly 3% to lead gainers in midday trading on Wednesday after Australia's central bank on Tuesday raised its official cash rate to 4.35%.

Westpac Banking (ASX:WBC) rose nearly 5% after Jarden said in a Tuesday note that the bank has "meaningfully" boosted its growth and risk appetite to achieve a larger balance sheet and higher revenue base to increase earnings.

On the flip side, energy stocks shed nearly 2% as oil prices declined after President Donald Trump said the US will pause an operation to help ships pass through the Strait of Hormuz due to "great progress" on a deal with Iran.

Woodside Energy Group (ASX:WDS) dropped 2%, and Yancoal Australia (ASX:YAL) declined 4%.