Australian shares rose for a fourth straight session on Wednesday to close at their highest in more two months, led by miners and banks after details of an interim deal to end the Middle East war lifted investor sentiment.
The benchmark S&P/ASX 200 index . AXJO ended 0.5% higher at 8966.30 points, its highest level since April 15.
Australian stocksrebounded from earlier losses as sentiment improved after key details emerged on the interim U.S.-Iran agreement, under which Washington would lift its blockade of Iran's ports while Tehran would restore the passage of oil tankers and other vessels through the Strait of Hormuz.
"The recent rally still has life, supported by easing geopolitical risk, lower oil prices and renewed momentum in risk appetite," said Hebe Chen, market analyst at Vantage Markets.
"Reopening of the Strait of Hormuz should keep the near-term tone positive."
Miners rose 1.2%, as copper prices edged higher, with index heavyweight BHP Group gaining as much as 1.2%, to hit a record high.
Banks gained 0.5%, logging their fourth consecutive session of gains.
The country's top lender, CBA and investment bank, Macquarie Group both gained over 1%, with the latter hitting a record high.
"Confidence in commodities and banks is improving as investors look past the RBA's hawkish pause and focus on the potential inflation relief from lower oil prices," added Chen.
Among data points, investors are also geared up for the first policy decision underFederal Reserve Chair Kevin Warsh, due later in the day.
Gold stocks ended 3.5% higher, on the back of steady bullion prices. Gold miner Northern Star Resources jumped 2.6%.
Energy stocks fell 2.3% after oil prices inched lower, while tech stocks traded in the green, gaining 2%.
Across the Tasman Sea, the New Zealand benchmark S&P/NZX 50 index slipped 0.2% to 13,392.98 points.
