(Reuters) - Australian shares edged higher on Wednesday as fears of an iron ore supply shortage bolstered mining stocks, but gains were capped by a profit miss for top lender Commonwealth Bank of Australia.
The S&P/ASX 200 index closed up 0.3 percent or 20.20 points at 6,026.10. The benchmark surged nearly 2 percent Tuesday.
The metals and mining index rose 1.2 percent to a near seven-year high, dominating gains in the benchmark.
Concerns are growing over a possible shortfall in iron ore supplies after Brazil's Vale SA on Tuesday declared force majeure on some iron ore contracts following a court-ordered halt to a mine responsible for nearly 9 pct of its output.
Mining behemoth BHP Group Ltd rose 1.7 percent while rival Rio Tinto Ltd added 1.9 percent.
Viva Energy Group surged 13.8 percent and had its best day ever, after announcing the renewal of its fuel partnership with supermarket chain Coles Group till 2029.
However, Commonwealth Bank of Australia dropped 1.4 percent after its half-yearly profit missed estimates due to rising costs.
The broader financials index fell 0.6 percent, with the rest of the "Big four" losing between 1.2 percent to 1.7 percent.
The index had surged 4.5 percent on Tuesday as investors cheered the outcome of a long-awaited report on finance-sector misconduct which recommended dozens of rule changes but spared any serious threat to industry.
New Zealand's benchmark S&P/NZX 50 index was closed due to a holiday.
(Reporting by Anushka Trivedi in Bengaluru; Editing by Kim Coghill)
