The Australian sharemarket closed marginally higher on Tuesday as investors welcomed signs that the United States and China are keeping trade negotiations alive, boosting risk sentiment across resource-heavy stocks.
The S&P/ASX 200 Index added 16.6 points, or 0.2%, to finish at 8,899.4, with five of the 11 sectors ending in positive territory.
Risk appetite improved after the Trump administration signalled openness to striking a deal with Beijing to ease renewed trade frictions, while China’s Ministry of Commerce called for further dialogue to resolve outstanding issues.
The Materials sector led gains, supported by a lift in iron ore prices and strong demand for precious metals.
Rio Tinto advanced 1.8%, BHP rose 2.2%, and Fortescue Metals added 1.8%.
Rio Tinto's quarterly production update also showed that the miner recorded its second-highest September quarter of iron ore shipments since 2019.
Gold miners also rallied strongly, extending gains on the back of record-high bullion prices.
Newmont, Northern Star Resources, and Evolution Mining rallied 4.5%, 2.8%, and 1.9%, respectively.
Silver prices hit an all-time high after a short squeeze in London intensified buying momentum.
Silver Mines surged 7.1%, Andean Silver climbed 6.5%, and Unico Silver rose 7.3%.
By contrast, the major banks weighed on the broader index.
Commonwealth Bank eased 0.5%, National Australia Bank slipped 1%, Westpac fell 1.2%, and ANZ dipped 0.3%.
In the energy space, Paladin Energy jumped 9.6% after its quarterly production report showed a significant increase in output at the Langer Heinrich Mine in Namibia, with ramp-up operations continuing as planned.
Other uranium producers followed suit, with Deep Yellow gaining 13.5% and Boss Energy rising 4.2%.
On the bond markets, yields eased, with 10-year Treasury rates down 1.2% to 4.257% and two-year yields lower by 1% at 3.439%.
