Australian shares closed at their highest in nearly two years on Tuesday, buoyed by a rally in financials with the recent round of mortgage rate hikes driving bullish sentiment across the banking sector. The S&P/ASX 200 index climbed 1.3 percent, or 74.5 points, to 5,821.2, its highest close since May 2015.
Financials accounted for more than half of the gains, with the country's biggest mortgage lender, Commonwealth Bank of Australia, rising 2.2 percent to a more than one-month closing high. Australia and New Zealand Banking jacked up mortgage rates for speculative buyers on Friday as part of an intensifying campaign by regulators to hose down a heated housing market. Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp made similar hikes earlier this month.
Among other gainers, Quintis Ltd leapt 13.6 percent after the sandalwood plantation group said its managing director had resigned and would consider making a take-over offer for the company together with an unnamed international group.
New Zealand's benchmark S&P/NZX 50 index nudged up 0.04 percent, or 2.52 points, to finish the session at 7,065.23.