Australia shares rose on Tuesday, as strong iron ore prices drove gains among mining stocks, while Macquarie Group climbed 5.6% after the financial conglomerate posted an upbeat annual outlook on better market conditions.

The S&P/ASX 200 index was up 0.9% at 7,174.2, as of 0030 GMT. The benchmark closed 0.1% lower on Monday.

Miners led the gains with a 2.5% climb on the back of strong iron ore prices following demand optimism from China after its state planner called for faster infrastructure construction.

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Heavyweights BHP Group, Rio Tinto and Fortescue Metals Group advanced between 2.5% and 2.8%.

Financial stocks were up 0.4%, despite losses in two of the "Big Four" banks, as Macquarie Group, which does not disclose profit figures in quarterly updates, flagged a "record" quarter, driven by profit contribution from its market-facing businesses and an improvement in overall trading conditions.

Commonwealth Bank of Australia and National Australia Bank lost marginally, while Westpac and Australia and New Zealand Banking Group gained 0.7% and 0.5%, respectively.

Suncorp Group advanced 4.8% after its first-half cash earnings beat Citi's estimates, and the insurer set a natural hazard cost estimate below the lower end of an earlier forecast range.

Gold miners gained 1.2% amid strong bullion prices, with Newcrest Mining and Northern Star adding about 1.4% each.

Bucking the positive trend, the technology sector dropped 1.2%, tracking a lower finish on Wall Street's tech-heavy Nasdaq index.

Australia-listed shares of Block Inc sank 6.2%, while Computershare slipped 3.4%.

New Zealand's benchmark S&P/NZX 50 index was up 0.1% at 12,295.48 points.