AUSTRALIAN shares rose on Tuesday to a 3-1/2-month closing high, lifted by gains in miners and energy firms on strong underlying commodity prices, while rising inflation was seen nudging the central bank to move closer towards hiking interest rates.

       The resources-heavy S&P/ASX 200 index climbed 0.56% to 7,565.20, its highest close since Jan. 5, as trading resumed after a holiday-extended weekend.

       The Reserve Bank of Australia (RBA) saw core inflation rising above its 2%-3% target range in the March quarter, strengthening its stance to hike rates for the first time in more than a decade, minutes of the bank's April policy meeting showed.

       "I don't think the RBA wants to get as far behind the curve as the Fed, so they're probably going to be moving (interest rates) sooner than most people think," said Brad Smoling, managing director at Smoling Stockbroking.

       "Inflation issues are going to be long lasting and people are going to be seeking hard assets like commodities, energy and metals," Smolling said, adding that the domestic stock market would rise further on the back of gains in commodity stocks.

       Miners advanced 1.2% to lead gains on the benchmark after iron ore futures jumped overnight on hopes of additional stimulus to support China's economy. Iron ore giants Rio Tinto and BHP climbed more than 1% each.

       Energy stocks climbed 1.3% on strong oil prices as investors fretted over tight global supply after Libya was forced to halt some exports and as factories in Shanghai prepared to reopen after a COVID-19 shutdown.

       Sector heavyweight Beach Energy rose 4.1%, leading gains on the sub-index, while Woodside Petroleum advanced nearly 2%.

       Gold stocks gained 1.1%, tracking overnight strength in bullion prices. Newcrest Mining, the country's largest gold miner, jumped 1.8%.

       In New Zealand, the benchmark S&P/NZX 50 index closed 0.5% lower at 11,835.88. - Reuters