Australian shares are led higher by banks and retailers.

Australian shares followed Wall Street's rise on Thursday. Financial stocks and consumer discretionary companies led the charge, after investor concerns about a global war of trade began to fade.

As of 2350 GMT, the S&P/ASX 200 Index rose by 0.9% to 8,490.7. The benchmark closed Wednesday 0.5% higher.

Overnight the Dow Jones Industrial Average in the U.S. rose 0.71%. The S&P 500 increased by 0.39%. Nasdaq gained 0.19%.

Investors ignored the comments of President Donald Trump, who said that the U.S. wanted to develop the economically-destroyed Gaza Strip.

The fear of a global trade war escalating also diminished following China's relatively measured response to Trump's tariffs of 10%.

Financial stocks led the way in Sydney with a 1.2% increase. The "Big Four" banks gained between 1.2% to 1.8%.

Wesfarmers (Australia's largest non-food retailer) grew 2.5%, while the discretionary retail sector grew 1.6%.

The real estate sector also saw a 1.6% increase.

The index of heavyweight mining increased by 0.4%. The copper prices rose to their highest level in over a week Wednesday.

The Dalian Commodity Exchange's Chinese iron ore futures also increased by 0.7%.

Gold prices continue their record-breaking run. The domestic sub-index of gold jumped up to 2.2%, reaching its highest level ever.

After oil prices dropped more than 2% over night, energy stocks were the only exception, with a 0.6% decline.

Beach Energy fell as much as 4,6% after its profit and dividend failed to meet expectations. It was the biggest loser in the benchmark index.

PEXA Group, among other stocks, fell 4% as the digital property settlements platform increased its impairment loss range.

After its second-quarter earnings exceeded analysts' expectations, local shares of News Corp rose 4.5% and became the top gainer in the benchmark index.

New Zealand's markets were closed on a public holiday.

(source: Reuters)