Australian shares scaled record closing levels on Wednesday, buoyed by gains in gold stocks as doubts emerged about the impact of a preliminary Sino-U.S. trade pact after a top U.S. official said China tariffs would remain in place for now.
The S&P/ASX 200 index <.AXJO> rose 0.5% to 6,994.80 at the close of trade. The benchmark ended 0.9% higher on Tuesday.
On Tuesday, U.S. Treasury Secretary Steven Mnuchin said tariffs on Chinese goods would be maintained until the completion of a second phase trade agreement, cementing worries that major differences are likely to remain between the two economic power houses.
"The limited nature of this (Phase 1) deal begs the question of prospects for further progress on lowering trade barriers," Mizuho analysts said in a note to clients.
As widely reported, the eventual removal of tariffs by Washington, which is not expected until after November's presidential elections, would depend on Beijing's compliance with the Phase 1 accord.
U.S. President Donald Trump and Chinese Vice Premier Liu He are slated to sign the deal at the White House later in the day.
Australia's gold index <.AXGD> settled 3.3% higher, the most in four months, as bullion prices rose on safe-haven demand amid worries of a protracted Sino-U.S. tariff dispute.
St Barbara Ltd <SBM.AX> was the top gainer on the Australian benchmark stock index, rising about 8% to a one-week closing high, while Evolution Mining <EVN.AX> climbed 5.8%.
Gains in major gold miners also helped the broader mining sector <.AXMM> advance 0.3% to a 5-1/2-month closing peak.
Energy stocks <.AXEJ> ended 0.7% higher, with industry heavyweights Santos <STO.AX> and Oil Search <OSH.AX> rising 1% each.
The heavyweight financial index <.AXFJ>, which includes some of the biggest Australian companies, added 0.4%. All of the 'big four' banks closed in the positive territory.
Across the Tasman sea, New Zealand's benchmark S&P/NZX 50 index <.NZ50> rose 0.4% to 11,676.67.
Real estate company Kiwi Property Group <KPG.NZ> climbed 2.3%, while energy retailer Genesis Energy <GNE.NZ> finished nearly 2% higher.
(Reporting by Nikhil Subba in Bengaluru; Editing by Subhranshu Sahu)
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