Most global markets lacked direction early Tuesday, though Australia's benchmark reached its highest point since early 2008.
Through the third quarter, equities in Australia lagged behind other markets world-wide. But they came alive last month as prices for stocks and commodities rose globally.
Continue Reading Below
In addition, Hong Kong stocks continued to rebound. After erasing a decline of nearly 2% on Monday, the Hang Seng Index rose 1% Tuesday to hit a fresh 10-year high, aided by a 2.9% jump from Tencent Holdings.
Australia's S&P/ASX 200 rose 4% in October, its best month of the year, and is up another 1.5% for the first week of November to put 2017's gain at 6%. On Tuesday, the index briefly topped 6000 for the first time since early 2008; it was last up 0.6% at 5998.
Major mining companies BHP Billiton and Rio Tinto led gains. They both rose more than 2% Tuesday to hit their best levels in two and six years, respectively.
Mining firms were helped by rebounding iron ore prices, which recently hit four-month lows. Futures prices on the Dalian Commodity Exchange in China shot up 5% on Monday and were recently up about 3.6%.
"Rising steel prices now have investors alert to the possibility that iron ore" might be putting in a base, "justifying a rally in the major mining stocks," said Ric Spooner, chief market analyst at CMC Markets.
Higher oil prices in U.S. trading gave other Australian stocks a lift. Santos and Woodside Petroleum each rose about 2.5%, with the former hitting its best level in 15 months.
After settling up 3% Monday, oil futures eased about 0.2% in early Asia trading.
No rate change is expected from the Reserve Bank of Australia later today, though there is a chance that its guidance, particularly on inflation, will become more dovish, analysts say.
Asian equity markets were quiet elsewhere, with benchmarks in Japan and Tokyo up less than 0.1%.
Write to Kenan Machado at firstname.lastname@example.org
(END) Dow Jones Newswires
November 06, 2017 21:08 ET (02:08 GMT)