(Reuters) - Australian shares ended higher on Monday, with resource stocks in favour after U.S. President Donald Trump announced a delay in planned tariff hikes on Chinese goods due to progress made in trade negotiations, although weaker utilities capped gains.
The S&P/ASX 200 index rose 0.3 percent to 6,186.30 at the close of trade. The benchmark firmed 0.5 percent on Friday.
Mining stocks ended about 0.8 percent higher after Trump confirmed he would hold fire on tariffs on Chinese imports. China is the biggest buyer of Australia's resource exports, and the de-escalation in trade tensions helped Australia's miners BHP Group and Rio Tinto, close about 0.9 percent and 0.5 percent higher, respectively.
Stronger iron ore prices also helped sentiment toward the mining companies.
Fortescue Metals Group, the world's fourth largest iron ore producer, closed about 2 percent up.
Meanwhile, software developer Appen Ltd was the biggest gainer on the ASX 200 and posted a record close after its annual net profit nearly tripled.
Pallets maker Brambles also lent support after it announced the sale of its plastics containers business and earmarked the proceeds for a share buyback.
On the downside, energy retailers AGL Energy and Origin Energy closed about 0.6 percent and 2.9 percent lower respectively after the Australian government's proposal to curb energy costs for consumers.
Origin Energy flagged a A$44 mln ($31.44 mln) hit to annual pre-tax earnings from the draft, while AGL was yet to comment on the matter.
New Zealand shares ended higher on strength in utilities and consumer staples. The benchmark S&P/NZX 50 index rose 0.4 percent or 35.42 points to finish the session at 9,344.63.
Energy retailer Meridian Energy ended 2.3 percent higher, while Synlait Milk gained 4.1 percent.
New Zealand retail sales jumped in the fourth quarter, official data showed on Monday, tempering concerns of softer growth in the country's economy.
(Reporting by Ambar Warrick in Bengaluru; Editing by Simon Cameron-Moore)
