Australian shares set for third day of gains as weaker oil boosts risk appetite

Australian shares experienced a third consecutive day of gains on Tuesday, buoyed by falling oil prices, a record Wall Street rally, and heightened risk appetite. The S&P/ASX 200 index climbed 0.5% to 8,729.00 by 0017 GMT, climbing 0.1% on Monday.

Oil prices plummeted by nearly $2 following a surge in Middle Eastern crude exports and the Group of Seven nations' commitment to increase supplies, alleviating concerns about potential shortages and reducing worries of another energy-induced inflation shock. This decline in prices negatively impacted energy stocks, which dropped 0.9%, with Woodside Energy and Santos falling by 0.8% and 0.4% respectively.

Mining and banking stocks, however, supported the broader market, capitalizing on the improved global risk appetite. The Nasdaq closed at a record high the previous night, reinforcing this sentiment. Sentiment was further bolstered by the expectation that the US Federal Reserve might maintain interest rates unchanged at its next meeting, following last week's softer-than-expected employment data, which suggested a cooling labor market and diminished concerns about prolonged higher borrowing costs.

Sydney's market saw miners rise 0.8%, on track for their third consecutive day of gains, propelled by higher copper prices. BHP Group gained 0.4% while Rio Tinto stayed flat. Iron ore miner Rio had its third-quarter production to report the following week. Banks also gained 0.2%, with National Australia Bank (NAB) being the only "Big Four" bank to trade in the green.

Gold stocks, real estate stocks, and health stocks also rose, with the latter two gaining 1.6% and 0.7% respectively. Conversely, tech stocks declined 0.7%, on course for their worst session since September 25. WiseTech Global was among the benchmark's biggest losers, falling 2.3% and registering as one of the biggest laggards. Meanwhile, New Zealand's S&P/NZX 50 index gained 0.2% to 13,719.93.