By Colin Packham and Charlotte Greenfield
SYDNEY/WELLINGTON, April 20 (Reuters) - Australian shares rose nearly 0.5 percent on Wednesday as stronger commodity prices pushed the index to more than a 3-1/2-month high, with miners leading the way.
The S&P/ASX 200 index .AXJO rose 0.33 percent, or 17.1 points to 5,205.8 by 0253 GMT, near the session high of 5,232.7 - the highest since January 5. The benchmark rose 1 percent on Tuesday.
"It is all about the miners today on the back of iron ore rallying more than 4 percent overnight," said Chris Conway, head of research and trading, Australian Stock Report.
BHP Billiton (LON:BLT) Ltd BHP.AX rose nearly 3 percent to hit a five-month high, while Rio Tinto (LON:RIO) Ltd RIO.AX rose 3.5 percent to hit a high of nearly A$52 a share - the highest since October, 2015.
BHP Billiton on Wednesday cut its fiscal 2016 iron ore production guidance by 10 million tonnes to 260 million tonnes due to bad weather and rail maintenance, further reducing ore shipments into an oversupplied global market. Australia's commodities sector enjoyed a strong start to the session, the country's financials segment weighed on the index.
Shares in Australia and New Zealand Banking Group ANZ.AX fell more than 1 percent, while Commonwealth Bank of Australia CBA.AX and National Australia Bank Ltd NAB.AX fell nearly 0.5 percent.
New Zealand's benchmark S&P/NZX 50 index .NZ50 edged down 0.13 percent, or 9.04 points, to 6,864.00 on Wednesday.
Accounting software company Xero XRO.NZ lost 1.43 percent, while casino operator Sky City SKC.NZ fell 0.78 percent.
Mighty River Power MRP.NZ dropped 1.86 percent on some profit taking after the company's quarterly results met investors' expectations. company A2 Milk ATM.NZ rose 2.17 percent as an auction held early on Wednesday morning showed global milk prices had risen for the second auction in a row.
Shares in Fonterra's FCG.NZ FSF.NZ fund, which provides investor exposure to the farmer-owned dairy exporter, also rose a more modest 0.35 percent.