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Miners, financials push ASX higher

The Australian share market has closed stronger, buoyed by mining, financial and health care stocks after solid earnings out of the US.

The benchmark S&P/ASX200 index was up 38.2 points, or 0.61 per cent, at 6,265.8 points on Tuesday, while the broader All Ordinaries rose 35.1 points, or 0.56 per cent, to 6,355.2 points.

IG market analyst Kyle Rodda said investors were buoyed by solid earnings out of the US, particularly Google's parent company, Alphabet's market-beating results after the close of trade.

"We saw some strong earnings overnight, a good lead from Wall Street," Mr Rodda said.

"I think investors have found their nerve again quite fortunately," he said.

The local market fell 0.9 per cent on Monday on global trade war concerns after US President Donald Trump threatened more tariffs on Chinese imports.

Asian markets were also stronger on Tuesday, showing gains across key indexes.

Mining giants Rio Tinto and BHP Billiton ended the session firmer, thanks in part to a small rise in the price of iron ore overnight.

BHP Billiton jumped 1.7 per cent to $33.01 and Rio Tinto gained 1.3 per cent to $80.90.

Australia's heavyweight financials sector also closed higher, following the lead from Wall Street, where US financial stocks rose in line with gains with US Treasury bond yields.

Investment bank Macquarie Group jumped 1.3 per cent to $125.63, while insurer Suncorp gained 1.8 per cent to $15.02.

The big four banks were mixed, with ANZ up 0.3 per cent to $29.22 and National Australia Bank gaining 0.2 per cent to $28.20.

Westpac closed 0.3 per cent lower at $29.55 and Commonwealth Bank lost 0.1 per cent to $75.17.

In the health care space, biotechnology giant CSL jumped 0.8 per cent to $202.45 and hearing implant maker Cochlear rose 2.1 per cent to $208.35.

In company news, Kogan shares dropped 12 per cent to a seven-month low of $5.84, despite the online retailer flagging a 90 per cent jump in full-year earnings to $23.7 million

The Australian dollar came under pressure on expectations of a widening interest rate gap between Australia and the US.

The Aussie was trading at 73.70 US cents at 1630 AEST on Tuesday, down from 74.16 US cents on Monday.

Australia's latest inflation data will be released on Wednesday, with market consensus for a 0.5 per cent rise in the consumer price index for the June quarter, Mr Rodda said.

ON THE ASX

* The benchmark S&P/ASX 200 index was up 38.2 points, or 0.61 per cent, at 6,265.8 points

* The broader All Ordinaries index was up 35.1 points, or 0.56 per cent, at 6,355.2 points

* The SPI200 futures contract was up 32 points, or 0.52 per cent, at 6,200 points at 1630 AEST

CURRENCY SNAPSHOT AT 1700 AEST:

One Australian dollar buys:

* 73.62 US cents, from 74.16 US cents on Monday

* 81.987 Japanese yen, from 82.345

* 63.15 euro cents, from 63.29

* 56.31 British pence, from 56.46

* 108.73 NZ cents, from 108.92

GOLD:

The spot price of gold in Sydney at 1700 AEST was $US1,219.25 per fine ounce, from $US1,229.391 per fine ounce on Monday.

Austrlaian Associated PressBack to Breaking News

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