(Reuters) - Australian shares ended higher on Tuesday as export-based stocks rallied on receding fears of a global trade war, while a strong lead from Wall Street further strengthened sentiment.
U.S. stocks rallied on Monday as investors bet against a global trade war as U.S. President Donald Trump faced growing pressure from political and diplomatic allies as well as U.S. companies urging him to pull back from proposed steel and aluminium tariffs.
The S&P/ASX 200 index <.AXJO> rose 1.1 percent or 67.4 points to 5,962.4 at the close of trade. The benchmark ended down 0.6 percent on Monday.
Australia's central bank left its cash rate at 1.5 percent on Tuesday, a widely expected decision given policy makers have signalled a steady outlook for some time to come.
Materials stocks led gains, with miner BHP Billiton <BHP.AX> giving the index its biggest boost. The stock ended more than 2 percent higher, pushing up the index some 7 points.
The Australian materials index <.AXMJ>, which largely comprises exporters of minerals and raw materials, ended 1.7 percent higher.
Oil prices extended gains, underpinned by robust demand forecasts and as OPEC ministers hailed the strength of its agreement with global producers to curb output in order to support the market.
Financials took a cue from their Wall Street peers. The finance index ended 0.9 percent higher, tracking a 1.4 percent gain in U.S. Financials <.SPSY> overnight.
Commonwealth Bank of Australia's <CBA.AX> gains, the sector's biggest, pushed up the ASX 200 by around 4 points.
Across the Tasman Sea, New Zealand shares snapped three straight losing sessions, led mainly by healthcare and telecom stocks.
New Zealand's benchmark S&P/NZX 50 index <.NZ50> rose 0.58 percent or 47.83 points to finish the session at 8,327.66 in broad-based gains.
Fisher & Paykel Healthcare Corp <FPH.NZ> ended about 1.1 percent higher and was the biggest boost to the benchmark, while telecommunications provider Chorus <CNU.NZ> gained the most, ending 2.8 percent higher.
(Reporting by Ambar Warrick in Bengaluru; Editing by Eric Meijer)
