News: ORG Australia shares rise on gains by materials, financials; NZ higher

Australian shares rose after two straight sessions of losses on Tuesday, as materials and financials led broad-based gains on the back of a solid Wall Street performance.

Adding to the better sentiment was stronger U.S. services sector data, which helped U.S. stocks up and provided further evidence of strength in the domestic economy.

The Australian main index (xjo) was 0.7 percent, or 39 points, higher at 5,439.3 by 0107 GMT.

The benchmark closed down 0.8 percent lower in the previous session, hurt by the political crisis in Italy, although global markets steadied overnight as fears of an imminent election ebbed.

Italian Prime Minister Matteo Renzi said he would resign after suffering a resounding defeat in a referendum over constitutional reform, leaving the euro zone's third-largest economy in political limbo.

Investors, however, will be watchful of Reserve Bank of Australia's monthly policiy meeting later in the day, where the central bank is expected to stand pat on its record low cash rate. [RPOLL]

Rising commodity prices on a weaker U.S. dollar drove up major miners buoyant, with BHP Billiton (BHP), Rio Tinto (RIO), and Fortescue Metals Group (FMG) each over 2 percent higher. [IRONORE/] [MET/L] <.DXY>

BHP Billiton, which also has significant oil interests, got a lift from winning a bid to partner with Mexican state oil company Pemex in a joint venture to develop a potentially lucrative deep water field in the country's untapped Gulf waters.

Energy shares were beneficiaries of overnight gains in oil, with the energy index .AXEJ adding 1.5 percent.

Australia's top power and gas retailer Origin Energy (ORG) earlier announced plans to spin off its interests in conventional oil and gas fields in an initial public offering expected to be worth at least A$1 billion ($745.50 million)..

Australian financial stocks .AXFJ , which have tracked the gains of their U.S. peers ever since the election of Donald Trump as U.S. President, were 1 percent higher in tune with the 'Big 4' banks.

"You've got great yield in the banks, you've got very stable earnings," said Chris Weston, an institutional dealer with IG Markets.

"We still have very low volatitity in financial stocks, which is great for income trade."

New Zealand's benchmark S&P/NZX 50 index (nz50) was up 0.4 percent, or 28 points, at 6,882.84.

Financials, which occupy over 70 percent of the index by market value, led the gains as Australia and New Zealand Banking Group (ANZ) and NZX Ltd (NZX) added 1.4 percent and percent respectively.

Consumer staple stock A2 Milk (ATM) was up 2.6 percent, while a 2.8 percent gain in Ryman Healthcare (RYM) sent up the healthcare sector. ($1 = 1.3414 Australian dollars)