Australian shares gained 0.2 percent on Tuesday as investors pinned hopes on further easing by the Reserve Bank of Australia to boost the flagging economy, but the market ended off highs on wariness ahead of key data this week. "We are all a little bit cautious, we still have the Chinese GDP data and the EU meeting this week," said Macquarie Equities division director Lucinda Chan.
This week's European Union leaders' meeting will discuss a possible bailout for Spain and austerity measures for Greece, although officials said talks would most likely not be completed at the summit. The benchmark S&P/ASX 200 index ended up 8.1 points at 4,491.5, just shy of the psychological 4,500 level, having failed to hold onto a 14-month high of 4,516.9 hit earlier.
New Zealand's benchmark NZX 50 index closed up 0.6 percent at 3,940.7, hitting a fresh four-and-a-half year high after low inflation figures backed views the central bank will keep interest rates at a record low well into next year. The market has jumped nearly 17 percent from a trough in late June.
Rio Tinto shares ended down 1.3 percent as it maintained its 2012 iron ore production guidance at 250 million tonnes, and said September-quarter iron ore output was up 5.6 percent Fortescue Metals Group jumped 3.5 percent after it said it plans to boost output by 25 percent to 20 million tonnes this quarter, counting on resurgent demand from leading buyer China. The major banks led gains on Tuesday as investors hoped for improved dividends at upcoming quarterly earnings. Leading the group was National Australia Bank, up 1.1 percent at A$26.62. Shares in Wesfarmers Ltd rose 1.2 percent.