Australian shares rose on Tuesday after a long weekend, gains in energy and technology stocks outweighing losses in the mining sub-index while markets were on edge about the talks between the US and China regarding the ongoing trade dispute.
The S&P/ASX 200 index rose 0.4% to 8,549.1 points as of 0032 GMT.
The benchmark closed 0.3% lower on Friday.
The discussions, which aim to reduce the trade tensions between the world’s two biggest economies, spilled over to a second day in London.
The dispute has expanded beyond tit-for-tat tariffs to restrictions over rare earths, threatening to cripple supply chains and slow global growth.
A favourable outcome could boost the economic activity in China, Australia’s biggest export partner, and subsequently help the local miners in Sydney.
However, miners inched 0.1% lower during the session, courtesy of weaker iron ore prices after China’s producer deflation deepened to its worst level in almost two years in May.
BHP slipped 0.1% whereas Rio Tinto and Fortescue were up 0.4% and 0.5%, respectively.
Boosting the benchmark, energy stocks advanced as much as 2% to their strongest level in more than three months as oil prices hit multi-week highs on a weaker dollar, among other factors.
Sector giants Woodside and Santos climbed 1.5% and 1.9% respectively.
Tracking Wall Street peers, technology stocks rose 0.6%, with WiseTech Global adding 0.5% and ASX-listed shares of Xero rising 0.9%.
Australian shares rise on the back of banks, energy stocks
Banks gained 0.4%, with only the top lender, Commonwealth Bank of Australia, in the negative territory, falling 0.5%.
Meanwhile, gold stocks were a drag on the benchmark with their 2.2% decline, on track for their fourth consecutive loss.
The sub-index was at an over one-week low.
Northern Star Resources slipped 0.5% while Evolution Mining shed 4.4%.
New Zealand’s benchmark S&P/NZX 50 index rose 0.3% to 12,577.11 points.
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