Mining, energy stocks push Australian shares higher

Australian shares inched higher on Wednesday as miners gained on strong metals prices and energy stocks benefited from a risk premium on oil prices tied to the deepening Middle East conflict.

The S&P/ASX 200 index rose 0.3% to 8,816.2 by 0007 GMT after closing flat on Tuesday.

Miners climbed as much as 2.3% and were on track for their best session in nearly two weeks.

While iron ore prices weakened on Tuesday, copper prices hit their highest in more than six weeks due to firm demand in top consumer China and sharp declines in inventories.

BHP rose 2.9% to its highest level since July 16, while Rio Tinto advanced 1.6%.

Capstone Copper’s Australia-listed shares surged 5% to hit their highest level since July 15 and were on track for their steepest one-day rise in two weeks.

Gold stocks advanced 2.4% and touched their highest level in a week as bullion prices firmed.

Evolution Mining and Northern Star Resources were up 2.8% and 1.4%, respectively.

In the Middle East, two Saudi crude oil-carrying tankers en route Asia reversed course after Yemen’s Iran-aligned Houthis threatened a naval blockade and US forces announced strikes on Iranian military targets for the 11th straight night.

In Sydney, energy stocks advanced as much as 1.2%, heading for a fourth straight session of gains.

Bucking the trend, technology stocks fell 1% after a 3.3% jump in the previous session.

Technology One, WiseTech Global and Seek were among the top laggards on the benchmark, losing between 3.5% and 2.2%.

New Zealand’s benchmark S&P/NZX 50 index rose 0.4%, or 51.1 points, to 13,707.08.