Australia: Shares hit over two-month high on energy, miners boost

[BENGALURU] Australian shares rose on Tuesday to their highest in more than two months, as miners rode a rally in iron ore and energy stocks tracked soaring crude prices, with investors weighing the US Federal Reserve's plan of aggressive rate hikes.

The S&P/ASX 200 index was up 1.2 per cent at 7,367.40 by 0023 GMT. The benchmark fell 0.2 per cent on Monday.

The metals and mining index climbed 3.4 per cent, on track for its best day in more than two weeks, as iron ore prices ended higher on Monday.

Sector leaders Rio Tinto, Fortescue Metals Group and BHP Group added between 1.7 per cent and 4.3 per cent.

Energy stocks gained 2.3 per cent, with oil and gas explorers Woodside Petroleum, Santos and Beach Energy jumping 2.4 per cent to 3.8 per cent.

Crude prices settled up more than 7 per cent overnight as European Union nations disagreed on whether to join the United States in a Russian oil embargo after an attack on Saudi oil facilities.

Meanwhile, Fed Chair Jerome Powell said on Monday the central bank must move "expeditiously" to raise rates and possibly "more aggressively" to keep an upward price spiral from getting entrenched.

That sent domestic financial stocks up 1.3 per cent, with the so-called "Big Four" banks advancing between 0.9 per cent and 1.2 per cent.

Technology stocks mirrored Wall Street's weak finish, with Australian shares of Block Inc leading the declines with a 3.1 per cent cut.

Coal miner New Hope Corp climbed as much as 9.9 per cent after posting a half-year profit and announcing a four-fold jump in its interim dividend payout.

New Zealand's benchmark S&P/NZX 50 index fell 0.2 per cent to 12,147.69. Data on Tuesday showed the country's consumer confidence fell in the first quarter and is now at its lowest level since the global financial crisis. REUTERS