Australian shares rose for a third straight session on Thursday, underpinned by gains in the financial sector that lifted Commonwealth Bank to a two-month closing high. The benchmark S&P/ASX 200 index closed up 33.4 points, or 0.6 percent, at 5,669.6. It touched 5,691.2 - a level last seen on June 24. Commonwealth Bank shares put on 1.0 percent to A$87.96, having touched a session high of A$88.41.
Also firmer, New Zealand's benchmark NZX 50 index climbed 18.2 points, or 0.3 percent, to 5,824.2. The index has gained more than 3 percent in the past three sessions, turning around from a five-month trough of 5,383.7 a week ago. Commonwealth Bank rose more than 1 percent to touch a two-month high of A$88.32. The stock has recovered 50 percent of its March to June drop, from a record high of A$96.69 to A$79.19, and outperformed the other major lenders with that retracement.
Shares in Rio Tinto eased 0.2 percent after the world's second-biggest iron ore miner trimmed its full-year guidance for ore shipments. New Zealand shares pushed to a one-week high as solid gains for big-cap stocks led the market for a third session. The benchmark NZX50 index rose as high as 5,838.3, before edging back to 5,825.0, up 0.3 percent on the day.
Improving risk sentiment and the prospect of further central bank rate cuts encouraged investors to pick up recently sold-off stocks. Among the leaders Contact Energy was up 1.2 percent, Fletcher Building put on 1 percent, and telecommunications company Spark gained 1.1 percent.