(Reuters) - Australian shares ended marginally higher on Wednesday, as solid gains in the mining and financial sectors - the benchmark index's biggest components - helped outweigh a decline in technology and healthcare stocks.
The S&P/ASX 200 index <.AXJO> inched 0.4% higher to 6638.00 at the close of trade. The benchmark slipped 0.5% on Tuesday.
The mining index <.AXMM>, whose constituents comprise the world's largest miners, closed 1.4% higher, with investors encouraged by rising iron ore prices due to expectations that China would implement more economic stimulus to boost steel demand.
Industry heavyweight BHP Group <BHP.AX> gained 1.4%, while peer Rio Tinto <RIO.AX> ended the session 2.2% higher.
Michael McCarthy, chief market strategist at CMC Markets, said an improving risk sentiment is driving people towards growth stocks instead of safe-havens, thus benefiting resource stocks.
The European Central Bank is expected to cut interest rates, or ramp up asset purchases, or both at a policy review on Thursday and expectations that major central banks will ease monetary policy further to support a flagging global economy has helped risk sentiment, along with hopes that talks next month between the United States and China will de-escalate their trade war.
Financials <.AXFJ> were up 0.6% at close, their highest level in over a month, helped by the "Big Four" banks which each ended in positive territory.
National Australia Bank <NAB.AX> revised its outlook for interest rate cuts by the country's central bank, predicting at least two more easings to 0.5% by February from previous forecast of one cut.
Meanwhile, the technology <.AXIJ> and healthcare indexes <.AXHJ> continued to weigh on the benchmark, slumping 1.6% and 1.2% lower at close, respectively.
Data solutions provider Appen Ltd <APX.AX> tumbled about 6% to end the session at a near four-month low, while drugmaker CSL Ltd <CSL.AX> fell 1.3% at close.
Energy stocks <.AXEJ> forfeited earlier gains to end the session 0.5% lower, with oil and gas major Santos Ltd <STO.AX> shedding about 3% and Oil Search <OSH.AX> slipping about 1% lower.
Neighbour New Zealand's benchmark S&P/NZX 50 index <.NZ50> ended almost 2% lower at 10,924.88, pressured by telecom and energy stocks.
Electricity retailer Meridian Energy <MEL.NZ> fell over 5% ending the session at its lowest level in slightly over a week, while telecom company Spark New Zealand <SPK.NZ> closed almost 5% down.
(Reporting by Nikhil Subba in Bengaluru; Editing by Simon Cameron-Moore)
