[BENGALURU] Australian shares rose on Thursday as gains in financials, led by the country's third largest lender National Australia Bank, eclipsed losses in the mining and energy sectors.

The S&P/ASX 200 index rose 0.7 per cent or 43.1 points to 6,703.3 by 0122 GMT, recovering after a 0.6 per cent loss on Wednesday.

Powering the benchmark, financial stocks advanced 0.9 per cent to mark their best day in more than three weeks. The "Big Four" banks added between 0.2 per cent and 1.9 per cent.

Shares of National Australia Bank rose as much as 3 per cent and was among the top gainers on the ASX 200, even after the lender reporting a 10.6 per cent drop in annual cash earnings and cutting its dividend to 83 Australian cents per share.

"It is purely relief that they didn't do a capital raise or cut their franking...the dividend cut was already priced in anyway. The yield is still quite compelling in an environment where you have record low interest rates," Henry Jennings, senior Analyst and portfolio manager at Marcustoday Financial Newsletter said.

To buttress its capital position, NAB said it would raise about A$1.55 billion in new shares via a partially underwritten dividend reinvestment plan.

Mr Jennings said the fact NAB didn't touch with its franking credits like Australia and New Zealand Banking Group or raising money through an institutional placement - as Westpac Banking Corp did on Monday - allayed investor fears.

Energy stocks dropped 1 per cent, after a much larger-than-expected build in US crude inventories and a report on a possible delay in the signing of a US-China trade deal pressured global crude prices.

Santos, the country's no. 2 independent gas producer, shed 1.6 per cent, while oil and gas explorer Cooper Energy slumped 2.6 per cent.

Miners also posted a subdued performance, with the sub-index falling as much as 0.5 per cent. Mining behemoth BHP Group and Fortescue Metals Group, the world's fourth largest iron ore miner, fell 0.8 per cent and 0.6 per cent each.

Gold stocks were poised to snap a two-day losing streak, as doubts about a US-China breakthrough boosted demand for the bullion, which is seen as a safe-haven during times of economic or political uncertainty. Newcrest Mining, the country's largest gold producer strengthened 1.7 per cent, while Northern Star Resources added 1.2 per cent.

James Hardie Industries was among the biggest gainers on the benchmark index, soaring as much as 9.5 per cent to a record high. The world's largest fibre cement maker forecast higher earnings in fiscal 2020 amid an improving US housing market.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index edged down 0.1 per cent or 8.64 points to 10,750.54. Electricity retailer Trustpower skidded 2.5 per cent, while dairy company Synlait Milk fell 2.1 per cent.

REUTERS