Australia: Shares end at a two-week high

[SYDNEY] Australian shares closed at a two-week high on Tuesday, marking a positive finish for a fourth straight session, as heavyweight miners gained on firmer iron ore prices and financial stocks tracked US peers higher.

The S&P/ASX 200 index ended up 0.98 per cent at 7,115.2, its highest closing level since May 10.

"Financial stocks led quite well on Wall Street overnight, which gave us a good lead here," said Brad Smoling, managing director at Smoling Stockbroking.

The financial index, up 1.1 per cent, extended gains to a fourth session to hit its highest close since Feb 21. The so-called "big four" banks rose between 0.5 per cent and 0.9 per cent.

"Financials are equipped to weather the storm if we see that rise in inflation, as we may " Mr Smoling added.

Inflation concerns have loomed over equity markets in the recent weeks, as high inflation numbers could revive talk of an early tapering by the US Federal Reserve.

The Australian metals and mining index rose about 1.2 per cent, snapping a four-session losing streak, as iron ore futures in Asia inched higher amid China's warning against commodity price manipulation and speculative trading.

Heavyweights Rio Tinto, BHP Group, and Fortescue Metals added between 1.4 per cent and 1.7 per cent.

In New Zealand, the benchmark S&P/NZX 50 index fell 0.9 per cent to 12,341.2.

New Zealand's central bank said on Tuesday it was likely to be "patient" over the stimulus policy as it seeks to reach maximum employment.

REUTERS