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Dec 21 (Reuters) - Australian shares closed at their highest in more than 16 months in thin trade on Wednesday, led by materials and financial stocks as investor sentiment was boosted by Wall Street's record run overnight.
The NASDAQ Composite .IXIC rose to record highs while the Dow Jones industrial average .DJI flirted with the 20,000 point mark. The rally was fuelled by financials. .N
The S&P/ASX 200 index .AXJO rose 0.4 percent, or 22.43 points, to 5,613.5, its highest closing level since Aug. 5, 2015.
Financial stocks .AXFJ followed suit to close at their highest in over 16 months, in step with the gains of their U.S. counterparts.
National Australia Bank Ltd NAB.AX and Australia and New Zealand Banking Group Ltd ANZ.AX led the pack, both closing at multi-month highs.
Miners .AXMM jumped 1.4 percent, aided by recovering copper and gold prices. GOL/ MET/L
BHP Billiton (LON:BLT) Ltd BHP.AX lifted the main index most, gaining over 1 percent, while Rio Tinto (LON:RIO) Ltd RIO.AX added 1.5 percent.
Energy stocks .AXEJ gained with oil prices nudging up over expectations of reduction in U.S. crude inventory ahead of data to be announced later in the day. O/R
Oil Search Ltd OSH.AX gained about 1 percent and Whitehaven Coal Ltd WHC.AX was up 3 percent.
New Zealand's benchmark S&P/NZX 50 index .NZ50 ended 0.19 percent higher at 6,802.76. There were gains in consumer and materials stocks, but utilities, real estate and health care ended down.
a2 Milk Company Ltd ATM.NZ gained 5.9 percent, while Fletcher Building Ltd FBU.NZ rose 3.4 percent, its highest intraday jump since Nov 14.