Australian shares have risen, with banks leading near across-the-board gains and an easing in investor concerns over the tension between the US and Turkey.

The benchmark S&P/ASX200 closed up 47.4 points, or 0.76 per cent, to 6,299.6 points, while the All Ordinaries was up 44.9 points, or 0.71 per cent, to 6,386.2 points.

Banking stocks led gains, with the financials index at its highest level since March, helped by the low Australian dollar.

Across regional markets investors had been encouraged that falls on Wall Street were only minor overnight: the Dow ended Monday down 0.5 per cent, while the S&P 500 lost 0.4 per cent and the Nasdaq 0.25 per cent.

Turkey’s lira found a moment’s respite at 6.70 per US dollar , up 2.6 per cent, after the central bank said it would provide liquidity and cut reserve requirements for banks.

Turkey’s clash with the US over the jailing of a US pastor has sparked sanctions from the United States that have cast doubt over the Turkish economy.

Locally, while NAB reported a three per cent fall in third-quarter cash earnings to $1.65 billion and warned of higher impairment provisions in the future, analysts slated the sector gains home to international factors.

Tribeca Investments deputy portfolio manager Jun Bei Liu said there were few surprises in the NAB announcement and the gains for the banks were driven by concerns about the stability of smaller, more volatile markets as trade tensions escalate.

“I really think it’s offshore guys moving money out of emerging markets,” Ms Liu said.

A recovery in gold prices, coupled with higher Chinese iron ore futures drove up the demand for materials stocks.

Global miner BHP firmed 1.5 per cent to $33.82, while gold miner Newcrest rose 0.8 per cent to $21.21.

In companies news, pizza maker Domino’s slumped 6.5 per cent to $49 after delivering an 18 per cent jump in full-year profit but undershooting on its own growth guidance.

Coal miner Whitehaven finished the day 1.3 per cent higher at $5.33 as it delivered a full-year profit increase of 30 per cent and forecast continuing strong demand for thermal coal out of Asia.

Hearing implants giant Cochlear weighed down the health care sector when it posted a lower-than-expected full-year net profit.

Cochlear shares dropped three per cent to $192.75.

The Australian dollar remained under pressure as investors continued to flock to the safe-haven US greenback.

The Australian dollar was at 72.66 US cents, down from 72.81 US cents on Monday.


* The S&P/ASX200 closed up 47.4 points, or 0.76 per cent, at 6,299.6 points

* The All Ordinaries was up 44.9 points, or 0.71 per cent, at 6,386.2 points.

* The SPI200 Futures index was up 46, or 0.74 per cent, at 6,246 points at 1630 AEST


One Australian dollar buys:

* 72.66 US cents, from 72.81 US cents on Monday

* 80.686 Japanese yen, from 80.293

* 63.62 euro cents, from 63.90

* 56.8 British pence, from 57.12

* 110.14 NZ cents, from 110.63


The spot price of gold in Sydney at 1700 AEST was $US1,195.02 per fine ounce, down from $US1,207.80 per fine ounce on Monday.