(Updates to close)
Jan 4 (Reuters) - Australian shares closed at a 19-month high on Wednesday with gains in financials outweighing the declines in real estate stocks, while the rally in mining stocks eased after prices of base metals weakened.
The S&P/ASX 200 index .AXJO rose 0.06 percent, or 3.217 points, to 5,736.4. The benchmark extended the previous session's gains to hit its highest close since May 29, 2015. Trading volumes were 0.7 times the 30-day average.
The "Big Four" banks were the index's biggest drivers, with their shares rising between 0.5 percent and 0.9 percent. Financials .AXFJ closed at their highest in nearly 17 months.
Materials .AXMJ , which led the rally in the previous session, ended the day flat. Copper prices fell on a strong dollar and nickel dropped on expectations that Indonesia would ease restrictions on ore exports. MET/L
Mining heavyweight Rio Tinto (LON:RIO) Ltd RIO.AX shed nearly 1 percent while South32 Ltd S32.AX shed 0.7 percent.
Gold miners .AXGD rose 1.1 percent as gold prices held their ground in the face of a strong dollar. GOL/
Energy stocks .AXEJ recovered some of their losses from earlier in the session to end down 0.1 percent, as oil prices rebounded after dropping 2 percent. O/R Woodside Petroleum Ltd WPL.AX closed 0.8 percent lower.
Real estate stocks were the biggest drag to the main index, with shopping centre operator Scentre Group SCG.AX shedding nearly 2 percent.
New Zealand's benchmark S&P/NZX 50 index .NZ50 started the year up 1.4 percent, or 93.08 points, to 6,974.3, its highest close since Oct 25, 2016. Gains were led by healthcare and industrial stocks.
Auckland International Airport Ltd AIA.NZ jumped 3.5 percent and boosted the index most, while medical devices maker Fisher & Paykel Healthcare Corporation Ltd FPH.NZ rose 2.9 percent, its highest close since Nov 18, 2016.