Iron ore rally helps lead Australian shares higher

The Australian share market has gained ground, boosted by a jump in iron ore prices as data showed China imported a record amount of the steelmaking ingredient in 2024.

The benchmark S&P/ASX200 index on Tuesday finished up 39.1 points, or 0.48 per cent, to 8,231.0, while the broader All Ordinaries climbed 39.9 points, or 0.47 per cent, to 8,471.8.

Eight of the ASX's 11 sectors rose, while the financial and consumer discretionary sectors were flat and tech dropped 0.5 per cent.

The mining sector was the biggest gainer, rising 1.5 per cent as iron ore surged back above the $US100 a tonne mark on the back of Chinese customs data showing that the country imported a 1.24 billion tonnes of the commodity in 2024, its second consecutive record year.

BHP rose 1.4 per cent to $40.16, Fortescue climbed 2.9 per cent to $18.50 and Rio Tinto added 0.9 per cent to $119.80.

Goldminers also gained as the precious metal rose $US5 to $US2,668 an ounce, with Northern Star adding 1.9 per cent and Evolution climbing 1.3 per cent.

On top of all that it was a good day for oil producers as well as Brent crude changed hands at over $US80 a barrel, having spiked from about $US76 at the weekend after the US imposed new tougher sanctions on Russian oil and gas producers.

Woodside rose 0.5 per cent, Santos climbed 0.3 per cent and Whitehaven Coal surged 6.6 per cent.

Elsewhere, Star Entertainment Group jumped 12 per cent to 14 cents after the corporate filings revealed a Macau businessman had bought a 6.5 per cent stake in the money-burning casino company, which has only a few months of liquidity left before it will be forced into administration.

City Chic Collective surged 14.6 per cent to 11 cents after the plus-size women's retailer said sales had jumped over the holiday trading period.

"We expect this momentum to continue into H2," chief executive Phil Ryan said.

Mesoblast fell per cent to $2.55 after the biotech company raised $260 million at $2.50 per share in a private placement to existing shareholders.

Telix Pharmaceuticals rose four per cent to $24.98 after the Melbourne-based radiopharmaceutical company said it had beaten guidance with $US517 million in revenue in 2024, up 55 per cent from 2023.

Managing director and CEO Christian Behrenbruch said 2025 was "shaping up to be a transformative year for Telix".

In the financial sector, most of the big four banks suffered their fourth day of losses.

CBA fell 0.5 per cent to $151.96, Westpac dropped 0.2 per cent to $31.80 and NAB dipped 0.1 per cent to $37.18, while ANZ climbed 0.4 per cent to $29.02.

The Australian dollar had rebounded a bit, buying 61.88 US cents, from 61.39 US cents at the close on Monday.

ON THE ASX:

* The benchmark S&P/ASX200 index on Tuesday rose 39.1 points, or 0.48 per cent, to 8,471.8

* The broader All Ordinaries gained 39.1 points, or 0.48 per cent, at 8,231.

CURRENCY SNAPSHOT:

One Australian dollar buys:

* 61.88 US cents, from 61.39 US cents at Monday's ASX close

* 97.55 Japanese yen, from 96.73 yen

* 60.38 euro cents, from 60.06 euro cents

* 50.68 British pence, from 50.52 pence

* 110.32 NZ cents, from 110.59 NZ cents