The mining index, whose constituents comprise the world's largest miners, closed 1.4% higher, with investors encouraged by rising iron ore prices due to expectations that China would implement more economic stimulus to boost steel demand. Industry heavyweight BHP Group gained 1.4%, while peer Rio Tinto ended the session 2.2% higher.
Michael McCarthy, chief market strategist at CMC Markets, said an improving risk sentiment is driving people towards growth stocks instead of safe-havens, thus benefiting resource stocks.
The European Central Bank is expected to cut interest rates, or ramp up asset purchases, or both at a policy review on Thursday and expectations that major central banks will ease monetary policy further to support a flagging global economy has helped risk sentiment, along with hopes that talks next month between the United States and China will de-escalate their trade war. Financials were up 0.6% at close, their highest level in over a month, helped by the "Big Four" banks which each ended in positive territory.
Meanwhile, the technology and healthcare indexes continued to weigh on the benchmark, slumping 1.6% and 1.2% lower at close, respectively. Data solutions provider Appen Ltd tumbled about 6% to end the session at a near four-month low, while drugmaker CSL Ltd fell 1.3% at close.
Energy stocks forfeited earlier gains to end the session 0.5% lower, with oil and gas major Santos Ltd shedding about 3% and Oil Search slipping about 1% lower. Neighbour New Zealand's benchmark S&P/NZX 50 index ended almost 2% lower at 10,924.88, pressured by telecom and energy stocks. Electricity retailer Meridian Energy fell over 5% ending the session at its lowest level in slightly over a week, while telecom company Spark New Zealand closed almost 5% down.