News: XMJ Australia shares higher as basic materials gain; NZ up

(Updates to close)

Oct 25 (Reuters) - Australian shares ended higher on Tuesday, tracking a gain in Wall Street helped by strong corporate earnings, with the financials and basic materials sectors leading the rally.

The S&P/ASX 200 index (xjo) finished 0.6 percent, or 34.31 points, higher at 5,442.8. The benchmark lost 0.4 percent on Monday.

The basic materials sector .AXMJ rose about 1 percent, closing at its highest since June 2015.

Gains were helped by Chinese iron ore futures surging 6 percent to the highest in more than two years on Tuesday, chasing rising coal prices. [IRONORE/]

Iron ore miner Fortescue Metals (FMG) closed at its highest since April 2014, gaining 6.5 percent.

Mining heavyweights Rio Tinto Ltd (RIO) and BHP Billiton Ltd (BHP) were 2.4 percent and 0.4 percent higher, respectively.

The financial index .AXFJ was up 0.7 percent and saw all its constituents gain.

The "Big Four" banks rose in a range of 0.6 percent to 1.1 percent.

New Zealand's benchmark index (nz50) was 0.6 percent, or 44.47 points, higher at 7,002.87.

The rise was fuelled by financials and consumer stocks, with Air New Zealand Ltd (AIR) and casino operator Skycity Entertainment Group (SKC) posting the biggest gains on the benchmark, each up close to 4 percent.