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Australian shares edged higher on Wednesday, supported by gold stocks and financials, though lower metal prices weighed on the heavyweight mining sector, while an overnight drop in Wall Street amid inflationary risks further dampened risk appetite.

The S&P/ASX 200 index was up 0.23% at 7,451.40, as of 0010 GMT.

Financial stocks, which were the top boost in the benchmark index, rose as much as 1.2%. National Australia Bank Ltd led the gains with a 2.9% jump, followed by Janus Henderson Group PLC climbing 1.7%.

Top lenders Commonwealth Bank of Australia, Westpac Banking Corp, and Australia and New Zealand Banking Group jumped between 0.5% and 1.5%.

Australian gold stocks gained up to 1.06%, as bullion climbed to the highest level since early September after US inflation worries lifted its safe-haven appeal.

Gold explorer Resolute Mining Ltd climbed 4.65% while Alkane Resources Ltd advanced 3.23%.

Among the laggards, heavyweight mining sector fell 1.4%, followed by Perenti Global Ltd and ioneer Ltd losing 3.55% and 5.1%, respectively.

Overnight, copper prices retreated on deepening debt crisis in China's property sector, while iron ore futures fell 1%.

Global miners BHP Group and Rio Tinto shed as much as 2% each as iron ore futures trade near a 12-month low.

Technology stocks dropped 1% with Nearmap Ltd losing 3.98%, followed by a 2.21% drop in Afterpay Ltd shares.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index edged 0.7% lower to 13,000.99, marking its worst intraday drop in five weeks.

Payments platform Pushpay Holdings fell 19% after the company reported a lower-than-expected total procession volume growth.

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