Australian shares ended 0.9 percent higher on Tuesday led by strong gains in banking and resources firms, helping the benchmark rebound from a five-week low touched last week. The S&P/ASX 200 index climbed 44.07 points to 4,975.6 at the close of trade. The benchmark rose 0.12 percent on Monday. New Zealand's benchmark S&P/NZX 50 index reversed early losses to end almost flat at 6,726.01 points.
"The index was towards the low side of the range and I think that has encouraged some bargain buying," said Chris Conway, head of research and trading, Australian Stock Report. Financials led the index higher, rising nearly 0.5 percent. Shares in National Australia Bank Ltd, Australia and New Zealand Banking Group and Macquarie Bank Ltd all rose more than 2 percent. Analysts attributed the rise in financials, which have been under pressure, to technical buying. Australia's resource companies rose on the back of stronger commodity prices. Shares in Rio Tinto Ltd and BHP Billiton Ltd rose more than 2 percent, while Fortescue Metals Group Ltd rose nearly 1.5 percent.
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