Australian shares inch higher on gains in banks and miners

Australian shares rose modestly on Tuesday, underpinned by gains in index heavyweight banks and miners, as declining oil prices brought investors back to risk assets.

The S&P/ASX 200 index climbed 0.3% to 8,759.60 by 0014 GMT, after closing little changed on Monday.

Oil prices fell below $100 a barrel overnight on hopes for a diplomatic breakthrough between Iran and the United States and a partial recovery in shipments from top exporter Saudi Arabia.

That helped yields on long-term Australian government bonds retreat, in tandem with long-dated US Treasury yields overnight. However, markets largely expect the Reserve Bank of Australia (RBA) to raise interest rates again next week to tame stubborn inflation that remains above its target range.

RBA Assistant Governor Sarah Hunter reiterated that rates might have to rise for a fourth time this year to ensure inflation was reined in.

The resources sub-index gained 0.4%, recouping some losses from the previous session on strong iron ore and copper prices.

BHP, Rio Tinto and Fortescue rose between 0.2% and 0.3%.

Among gold miners, Northern Star Resources and Evolution Mining advanced 1.1% and 0.7%, respectively.

Financials inched 0.2% higher in a second straight session of gains, with top lender Commonwealth Bank of Australia up 0.4%. Rate-sensitive consumer discretionary and real estate stocks climbed 0.7% and 0.4%, respectively.

Technology stocks rose as much as 3.9% and were on track for their steepest daily gain since late August, after the tech-heavy Nasdaq Composite notched a record high overnight.

Sector leaders WiseTech Global and Xero surged about 4% each.

The energy sub-index was among the outliers, trading down 0.9%.

Woodside Energy and Santos lost 1.5% and 0.8%, respectively.

Further south, New Zealand’s benchmark S&P/NZX 50 index advanced to a near two-week high of 13,853.14.