News: XEJ Australian shares a whisker away from record high on miners, energy stocks boost

	  ASX 200 closes at highest since Aug 2021 

	  Benchmark nearly breaches record high 

	  Iron ore, oil prices boost miners, energy stocks 

(Updates to close)

Australia's benchmark stock index ended at an over two-year high on Tuesday, but agonisingly short of its record-high level, as strong commodity prices boosted mining and energy stocks.

The S&P/ASX 200 index (xjo) closed 0.5% higher at 7,622.60 points, its highest since Aug. 13, 2021. The benchmark scaled to 7,632.70 earlier, a mere 0.10 points shy of its record high.

Broad-based gains across most sectors pushed the benchmark higher. Energy stocks .AXEJ gained 1.5% to finish at their highest level since Nov. 7 last year, benefiting from a surge in oil prices.

Sector majors Woodside Energy (WDS) and Santos (STO) both closed over 1% higher.

Strong inflation, weak consumer confidence and a tight labour market remain in focus in Australia as investors enter 2024 with the hope that the country's central bank is done hiking interest rates and will begin cutting soon.

Analysts at ANZ Group expect annual inflation to come within the central bank's target in the second half of the year, with an interest rate cut expected in the December quarter.

Meanwhile, U.S. jobs data due later this week is also in focus, particularly with the current dovish expectations for the Federal Reserve in mind.

"Any upside surprises in the jobs numbers could cause somewhat of a rethink as to how many rate cuts the Fed may actually deliver this year", said Tim Waterer, chief market analyst at KCM Trade.

For now, banking stocks .AXFJ continue to advance, with Australia's "Big Four" banks rising between 0.6% and 1.6%.

Heavyweight miners .AXMM closed up 0.5%, with BHP (BHP) and Rio Tinto (RIO) gaining 0.3% and 0.7%, respectively. Fortescue (FMG) jumped 1.3% to end at a record high.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index (nz50) settled marginally higher at 11,770.490 points.