(Reuters) - Australian shares ended at an 8-week high on Wednesday as global markets rallied on renewed optimism that the United States and China are inching toward a deal to end their bruising trade war.
In palpable relief after weeks of volatility in markets, MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> climbed 1.5 percent to its highest level since Dec. 14.
The S&P/ASX 200 index <.AXJO> closed up 1 percent or 55.9 points to 5,778.30, building on a gain of 0.7 percent in the previous session.
News that Sino-U.S. trade talks in Beijing had been extended into an unscheduled third day boosted risk appetite. [MKTS/GLOB]
U.S. President Donald Trump later said on Twitter that "Talks with China are going very well!"
Energy stocks <.AXEJ> soared 1.9 percent to an over 5-week high, with sector heavyweight Woodside Petroleum Ltd <WPL.AX> putting on 2.3 percent while Oil Search Ltd <OSH.AX> added 2.7 percent.
Oil prices surged on Wednesday, extending gains from the previous session as renewed U.S.- China trade talks and supply cuts by OPEC propped up markets. [O/R]
A jump in iron-ore and copper prices supported miners, with the metals and mining index <.AXMM> tacking on 0.5 percent. [MET/L]
Rio Tinto Ltd <RIO.AX> and Fortescue Metals Group <FMG.AX> rose 1.1 percent and 2.7 percent respectively.
Gold stocks <.AXGD> caught a break after steep falls in the previous two sessions to edge higher. Beadell Resources Ltd <BDR.AX> was the top gainer on the sub-index after its December gold production surged 27 percent compared to November.
Financial stocks <.AXFJ> also rose, with three of the "Big Four" lenders notching gains. Magellan Financial Group Ltd <MFG.AX> was the best performer, adding over 10 percent to end at a near 5-week high.
Healthcare stocks <.AXHJ> raced ahead, tacking on 2.1 percent to hit a near 3-month high. Heavyweight CSL Ltd <CSL.AX> rose 2.6 percent while Cochlear Ltd <COH.AX> gained 2.9 percent.
New Zealand's benchmark S&P/NZX 50 index <.NZ50> jumped 1.4 percent or 126.07 points to finish at 8,947.22, an over 8-week high.
Dairy firm a2 Milk Company Ltd <ATM.NZ> was among top gainers, up 3.7 percent while Fonterra Shareholders' Fund <FSF.NZ> firmed 1.3 percent.
(Reporting by Rashmi Ashok in Bengaluru; Editing by Kim Coghill)
