(Reuters) - Australian shares closed marginally higher on Tuesday, helped by mining shares and an uptick in U.S. benchmark Treasury yields that reduced worries about the world's biggest economy slipping into recession.
The S&P/ASX 200 index firmed nearly 0.1 percent to 6130.6 points. The benchmark fell 1.1 percent on Monday.
The 10-year U.S. Treasury yield, which fell in the previous session, climbed to reach to 2.43 percent on Tuesday.
Investors had been spooked by sharp falls in U.S. bond yields and an inversion of the U.S. Treasury yield curve, which many see as an indicator of a coming economic recession.
"We have seen some pressure on bonds markets... that's probably a major factor that's lifted (stocks)from slightly red to slightly in the green," Michael McCarthy, chief market strategist at CMC Markets, said.
Aiding the benchmark index on Tuesday were gains by the mining index. which firmed 0.9 percent
BHP Group rose 1.1 percent and Rio Tinto advanced 0.7 percent. Both were resuming operations in Western Australia disrupted by a tropical cyclone.
Pressuring the benchmark were shares of conglomerate Wesfarmers Ltd, which dropped about 3.5 percent to a near three-week low, following the announcement of a $1.1 billion bid for rare earths miner Lynas Corp.
Heavyweights in the oil sector Santos Ltd and Oil Search Ltd were top drags on the energy index. Santos declined 1.3 percent and Oil Search 1.1 percent.
Gains from higher oil prices, rooted in supply cuts led by OPEC and U.S. sanctions on Iran and Venezuela, were capped by concerns of a global economic slowdown.
Among the 'Big Four' banks, Commonwealth Bank of Australia and National Australia Bank ended higher, while Australia and New Zealand Banking Group and Westpac Banking Corp were down slightly.
New Zealand's benchmark S&P/NZX 50 index rose 0.6 percent or 55.5 points to finish the session at 9574.8.
Vista Group climbed 4.3 percent to a three-week high while Ryman Healthcare Ltd rose 2.4 percent to a four-week high.
(Reporting by Nikhil Subba in Bengaluru; Editing by Richard Borsuk)
