Australian shares recovered on Tuesday to close slightly higher after overnight strength on Wall Street and upbeat US consumer spending data lifted sentiment. The benchmark S&P/ASX 200 index finished up 9.083 points, or 0.17 percent, at 5478.3. Gains were driven by healthcare and energy stocks, with hospital operator Ramsay Health Care Ltd closing at a record high after it reported its full-year earnings.
New Zealand's benchmark S&P/NZX 50 index closed 0.28 percent, or 20.6 points, higher to finish the session at 7387.95. Auckland International Airport Ltd and medical devices maker Fisher & Paykel Ltd were the biggest gainers on the index. Investors are now turning their attention to US payroll data later on Friday to gauge if the Federal Reserve might be in a position to raise rates before year-end.
"It is basically a relief rally from yesterday," said Mathan Somasundaram, a quantitative strategist with Baillieu Holst. "We are getting a bit of a bounce from the big four banks. But I would expect that as the day goes by we would probably start selling off again and take some profits and probably end up with a small positive day." Financials, the biggest constituent on the index, added 0.5 percent with Commonwealth Bank of Australia and National Australia Bank gaining 0.6 percent and 0.8 percent respectively. The banking sector has been under pressure recently due to slowing earning growth and pressure on margins.
Gains in basic materials were led by Evolution Mining, which was 5.3 percent higher as gold rebounded from a near five-week low. Fortescue Metals gained 3.5 percent on the back of S&P upgrading its rating outlook. Oil stocks gained as oil futures edged up on a weaker dollar. Oil explorer Oil Search Ltd posted a 2 percent gain. New Zealand's rally was led by industrials and utilities with Auckland International Airport heading the gains. Medical devices maker Fisher & Paykel Corp and electricity generator and supplier Meridian Energy Ltd were among the biggest gainers on the main index.