Australian shares climbed 0.4 percent to a seven-week high on Tuesday, elevated by higher commodities prices as investors bet on fresh economic stimulus from the US Federal Reserve this week. The resource sector led gains, with top miners BHP Billiton and Rio Tinto advancing 1.3 percent and 0.8 percent respectively as iron ore prices jumped.

Spot iron ore prices on Tuesday rose to their highest level since July, backed by buying from top importer China. That helped mid-tier iron ore miner Atlas Iron jump 9.8 percent to A$1.52. The benchmark S&P/ASX 200 index rose 18.1 points to 3,576, after an intraday high of 4,581 that matched the 15-month high hit on October 18. But volumes were thinning heading into the Christmas break, with turnover at 80 percent of the 90-day average. The benchmark index has gained 12.4 percent for 2012. New Zealand's benchmark NZX 50 index lost 4.6 points to 4,026.2.

Copyright Reuters, 2012