Australia shares close at two‑month high on Middle East optimism

Australian shares rose for a fourth straight session on Wednesday to close at their highest in more two months, led by miners and banks after details of an ‌interim deal to ⁠end the ⁠Middle East war lifted investor sentiment.

The benchmark S&P/ASX 200 index . AXJO ended 0.5% higher ​at 8966.30 points, its highest level since April 15.

Australian stocksrebounded from earlier losses as sentiment improved ​after key details emerged on the interim U.S.-Iran agreement, under which Washington would lift its blockade of Iran's ports while Tehran would restore the ​passage of oil tankers and other vessels through the ⁠Strait of ‌Hormuz.


"The recent rally still has life, supported by ​easing geopolitical risk, ​lower oil prices and renewed momentum in risk appetite," said ⁠Hebe Chen, market analyst at Vantage Markets.

"Reopening of the ​Strait of Hormuz should keep the near-term tone positive."

Miners rose 1.2%, as copper prices edged higher, with index heavyweight BHP Group gaining as much as 1.2%, to hit a record high.

Banks gained 0.5%, logging their fourth consecutive session of gains.

The country's top lender, CBA and investment bank, Macquarie Group both gained over 1%, with the latter hitting a ‌record high.

"Confidence in commodities and banks is improving as investors look past the RBA's hawkish pause and focus on the potential ​inflation relief ​from lower oil prices," ⁠added Chen.

Among data points, investors are also geared up for the first policy decision underFederal Reserve Chair Kevin Warsh, due later in the day.

Gold stocks ​ended 3.5% higher, on the back of steady bullion prices. Gold miner Northern Star Resources jumped 2.6%.

Energy stocks fell 2.3% after oil prices inched lower, while tech stocks traded in the green, gaining 2%.

Across the Tasman Sea, the New Zealand benchmark S&P/NZX 50 index slipped 0.2% to 13,392.98 points.