Australian shares closed higher on Tuesday, amid raised concerns over Trump's pressure on the Federal Reserve's independence in setting interest rates.
The S&P/ASX 200 rose 0.6% or 49.1 points to close at 8,808.5.
The Justice Department has served the US central bank with subpoenas with the threat of a criminal indictment, Bloomberg reported.
Investors became "more open to geographically diversifying their equity exposure, and [have] been presented with some new reasons to potentially do so as the new year has gotten underway," wrote Lori Calvasina, US equity strategist at RBC Capital Markets LLC, as quoted by Bloomberg in a separate report.
On the domestic front, Australian consumer sentiment slipped further into pessimistic territory in January, with households growing more concerned about mortgage rates and near-term family finances, according to a survey by Westpac and the Melbourne Institute.
Australia's consumer confidence recorded the weakest New Year's reading in more than 15 years last week, even as it ticked up 3 points to 84.5.
In company news, Endeavour Group (ASX:EDV) reported sales for the 27 weeks in the fiscal first half ended Jan.4 rose to AU$6.68 billion from AU$6.62 billion last year. Shares of the company fell 3% at market close.
GQG Partners' (ASX:GQG) funds under management rose to $163.9 billion as of Dec. 31, 2025. Shares of the company fell 9% at market close.
Lastly, Shares of Northern Star Resources (ASX:NST) rose about 4% at market close, while Evolution Mining (ASX:EVN) climbed 2% as gold surged past $4,600 an ounce amid strong investor demand for safe-haven assets, fueled by uncertainty over the Trump administration's scrutiny of US Federal Reserve Chair Jerome Powell.
