(Reuters) - Australian shares climbed on Tuesday on a surge in base metal and oil prices, as trade war fears eased on reports and indications the United States and China are willing to renegotiate tariffs and trade imbalances.
The S&P/ASX 200 index <.AXJO> was up 0.7 percent, or 41.8 points, to 5,832.3 at the close of trade.
On Friday, fears of a trade war made the benchmark slide 2 percent, and it shed another 0.5 percent on Monday.
On Tuesday, worries shrank following Chinese Premier Li Keqiang's pledge to maintain trade negotiations and ease access to China for American businesses. [.N]
Chinese steel futures rose on Tuesday from near nine-month lows, while base metals prices climbed across the board, lifted by the hopes a trade war between top metals consumer China and the United States may be avoided. [MET/L] [IRONORE/]
Oil prices also edged higher on Tuesday, pushed up by concerns that tensions in the Middle East could lead to supply disruptions. [O/R]
Leading the Australian index's gains were materials and industrials.
Material stocks <.AXMM> gained 1.3 percent, with index heavyweights BHP Billiton <BHP.AX> and Rio Tinto <RIO.AX> rising 1.4 percent and 1.2 percent, respectively.
Toll roads networks developer Transurban Group <TCL.AX> advanced 2 percent and Sydney Airport Holdings <SYD.AX> added 2.2 percent.
In New Zealand, the benchmark S&P/NZX 50 index <.NZ50> rose 0.9 percent, or 75.71 points, to 8,508.12.
Healthcare stocks contributed to the day's gains, with CSL Ltd <CSL.AX> up 1.3 percent.
Consumer staples and utility stocks led the gains, with a2 Milk Company Ltd <ATM.NZ> jumping more than 3 percent and Contact Energy Ltd <CEN.NZ> up 2.5 percent.
The main index's biggest gainer was Synlait Milk Ltd <SML.NZ>. up 6.9 percent.
(Reporting by Christina Martin in Bengaluru; Editing by Richard Borsuk)
