Australian shares climbed to a 3-1/2-month high on Tuesday,...

Australian shares climbed to a 3-1/2-month high on Tuesday, while New Zealand stocks reached another record after a sudden reversal higher in oil prices whetted appetite for risk assets from equities to commodity currencies.

The S&P/ASX 200 index (xjo) bounced 1 percent or 53.745 points to 5,190.800 by 0325 GMT. The benchmark eased 0.4 percent in the previous session. A sustained break above brings in sight the year's high of 5,331.4.

Gains were broad-based with energy companies leading the rally after a bounce in oil prices. Engineering services WorleyParsons (WOR) rose almost 6 percent, closely followed by Origin Energy (ORG) up 5.6 percent.

Miners also gained sharply as a recovery in iron ore prices. BHP Billiton (BHP) jumped 5.2 percent to ground last trod in November, while Fortescue Metals Group (FMG) leapt nearly 6 percent.

Rio Tinto (RIO) added 3 percent even though it cut its 2017 production guidance from its Australian iron ore mines.

Investors took comfort in the 11 percent rise in first quarter iron ore shipments and confirmation it was on track for a record 350 million tonnes in 2016.

"In the short term Rio's guidance is being maintained and that comes as the iron ore price is high," said Shaw & Partners analyst Peter O'Connor."

New Zealand's benchmark S&P/NZX 50 index (nz50) touched another record high for the fifth session in a row at 6,867.43. It edged up 0.1 percent or 8.84 points to be last at 6,860.40.

The benchmark has gained 8.4 percent so far this year. With few local drivers, investor attention is focused offshore where quarterly earnings are driving sentiment.

The biggest gainers were the New Zealand stock exchange (NZX), up 2.0 percent and Heartland Bank (HBL), up 1.7 percent.

In the other direction, Comvita SKC) was down 1.0 percent.