Australian shares inch higher on gains in banks and miners

Australian shares experienced a slight increase on Tuesday, driven by gains in major banks and mining companies, as decreasing oil prices lured investors back into risk assets. The S&P/ASX 200 index gained 0.3% to 8,759.60 by 0014 GMT, edging out Monday's performance. Oil prices dropped below $100 a barrel the previous day, fueled by hopes for a diplomatic resolution between Iran and the United States and a partial rebound in shipments from key exporter Saudi Arabia.

This benefited long-term Australian government bond yields and US Treasury yields overnight. However, expectations are high for the Reserve Bank of Australia (RBA) to increase interest rates again next week to combat persistent inflation, which remains above its target range. RBA Assistant Governor Sarah Hunter hinted that rates could be raised for the fourth time this year to curb inflation.

The resources sub-index rose 0.4%, rebounding from previous losses due to strong iron ore and copper prices. BHP, Rio Tinto, and Fortescue all increased between 0.2% and 0.3%. Among gold miners, Northern Star Resources and Evolution Mining climbed 1.1% and 0.7%, respectively. Financial stocks edged up 0.2% for a second consecutive day of gains, with Commonwealth Bank of Australia rising 0.4%.

Rate-sensitive consumer discretionary and real estate stocks also gained 0.7% and 0.4%, respectively. Technology stocks soared as much as 3.9% and were poised for their biggest daily increase since late August, following the tech-heavy Nasdaq Composite's record high overnight. Sector leaders WiseTech Global and Xero surged around 4% each.

The energy sub-index underperformed, falling 0.9%. Woodside Energy and Santos slipped 1.5% and 0.8%, respectively. Meanwhile, New Zealand's benchmark S&P/NZX 50 index surged to a near two-week high of 13,853.14.