Australian shares rose on Tuesday as stronger iron ore prices drove heavyweight miners to a record close, ahead of the release of third-quarter gross domestic product data.
The benchmark S&P/ASX 200 index closed 0.2% higher at 8,579.70 points, after falling 0.6% on Monday. Miners advanced 0.7% to close at an all-time high of 6,885.30 points as iron prices rose due to steady steel consumption.
Heavyweights BHP, Rio Tinto and Fortescue added between 1.1% and 1.7%.
Higher commodity prices have helped the mining sub-index gain more than 30% so far this year, as investors continue to find value in the resources sector as they exit pricey banks on valuation and margin worries.
“Investors will continue to rotate into commodities in 2026,” said Jessica Amir, a market strategist at online trading platform Moomoo.
A combination of potential US Federal Reserve rate cut and expectations that demand for base and precious metals will outpace supply will make commodities attractive in the near term, Amir added.
Energy stocks climbed 1.1%, posting their best session in two weeks, as Ukrainian drone strikes on Russian energy sites pushed oil prices higher. Financials ended little changed.
Technology and consumer discretionary stocks slipped 1.6% and 0.3%, respectively. Meanwhile, the Australian Bureau of Statistics estimated government spending in the third quarter added 0.4 percentage points to the gross domestic product, suggesting an upside risk to the GDP report due on Wednesday.
A Reuters poll showed the economy likely expanded 0.7% in the quarter.
The data comes ahead of the Reserve Bank of Australia policy meeting next week, where it is widely expected to hold rates.
The recent hot inflation data has led investors to rule out any chance of further easing with swaps implying a split chance of a rate hike by the end of next year. In New Zealand, the benchmark S&P/NZX 50 index fell 0.4% to 13,502.77 points.
American Dollar Exchange Rate