News: SYD Australian shares hit 3-week high as COVID-19 cases stabilise

• Mining stocks hit their highest since May 2011
• Fortescue Metals hits all-time high
• James Hardie Industries top performer on the benchmark
• NZ dips as healthcare and consumer stocks drag

Australian shares rose to a three-week high on Tuesday, boosted by heavyweight financial stocks, after the country's second-most populous state reported a small rise in new COVID-19 infections, lifting investor sentiment.

As of 0106 GMT, the S&P/ASX 200 index (xjo) rose 0.56% to its highest since July 22. The benchmark closed 1.76% firmer on Monday.

Daily infections in Victoria peaked at 725 on Aug. 5 and have been trending lower in recent days, following the imposition of a hard lockdown in Melbourne on July 19

Investors also eyed stalled U.S. policymakers' efforts to hammer out a coronavirus relief bill.

U.S. congressional leaders and Trump administration officials said on Monday they were ready to resume negotiations on a coronavirus aid deal, but talks remained deadlocked.

Back home, solid gains in Australian banks helped the financial sub-index .AXFJ rise 1.2% to its highest since July 30.

The country's largest lender, Commonwealth Bank of Australia (CBA) , which is slated to report is annual results on Wednesday climbed 1.7%, while the rest of its "Big Four" peers added between 2% and 2.3%.

Mining stocks .AXMM climbed 0.8% with the world's fourth-largest iron ore miner, Fortescue Metals Group (FMG) , adding nearly 2% to hit a record high after it won a tender to supply Chinese steelmaker HBIS Group.

James Hardie Industries (JHX) , the world's biggest fibre cement maker, jumped 6% to a six-month high, making it the top performer in the local benchmark index as the company forecast higher full-year earnings from an improving U.S. housing market.

However, gold stocks fell about 1.2% as bullion prices retreated from an all-time high hit in the previous session.

Losses in the sub index .AXGD were led by De Grey Mining (DEG) , down 4.8%, followed by Alacer Gold Corp (AQG) , which fell 4%.

In New Zealand, the benchmark S&P/NZX 50 index (nz50) dipped 0.2% at 11663.72 points by 0111 GMT.

The country's largest construction firm Fletcher Building (FBU) lost as much as 3.4% after it forecast its first annual net loss in two years and warned of persistent challenges across its supply chains in the year ahead.