Australian shares rose to a near six-week high on Tuesday, led by miners, as appetite for risk assets improved after the US said it continued to engage with Tehran to make a deal, even as its blockade of Iran’s ports kept energy supply concerns alive.
The S&P/ASX 200 index climbed 0.8% to 8,998.80 by 0019 GMT, touching its highest point since March 4. It fell 0.4% on Monday.
Initial signs of easing oil supply disruptions have quickly been overshadowed by renewed uncertainty after the US military began a blockade of the Strait of Hormuz following the breakdown of peace talks in Islamabad.
Still, investors are holding onto hopes of a near-term resolution after a US official said engagement with Iran was continuing and there was forward momentum towards a possible agreement. Overnight, the S&P 500 and the Nasdaq composite indexes rallied more than 1%.
In Sydney, miners advanced 1.6% on Tuesday, helped by gains in iron ore and copper prices overnight. Rio Tinto and BHP climbed about 1.4% each.
Financials gained 0.3%, helped primarily by a 0.8% rise in top lender Commonwealth Bank of Australia. Peer Westpac fell more than 1.7% after it said interest-rate volatility linked to the Middle East conflict had weakened its earnings while also flagging a profit hit from costs linked to its RAMS portfolio sale.
Healthcare stocks rose 1.4%, while technology stocks jumped 3.9%.
Energy stocks led losses, falling 0.5% as a rally in oil prices lost steam, while consumer staples fell 0.2%. Among individual stocks, Qantas Airways fell as much as 3.8% after it raised its fuel cost outlook.
Hastings Technology Metals gained more than 2% after it secured monazite feedstock supply for its Thailand hydromet plant.
In New Zealand, the benchmark S&P/NZX 50 index rose 0.7% to 13,115.84.
American Dollar Exchange Rate