* Aussie stocks on track for 7th straight session of gains
* Rising iron ore prices lift BHP, Rio
* NZ set for first drop in seven sessions
By Aby Jose Koilparambil
April 3 (Reuters) - Australian shares rose to a near seven-month high on Wednesday as firmer iron ore prices boosted miners while healthcare stocks were lifted by record spending earmarked for the sector in the federal budget.
The S&P/ASX 200 index .AXJO rose 0.6 percent to 6,280.900 by 0017 GMT and was on track to gain for a seventh consecutive session. The benchmark had tacked on 0.41 percent on Tuesday and is up about 10.5 percent so far this year.
Broader sentiment got a fillip after U.S. President Donald Trump said trade talks with China, Australia's biggest trade partner, were going very well. remained the dominant gainers on the benchmark as a tight supply outlook pushed iron ore prices higher with China's futures of the commodity scaling a fresh peak on Tuesday. IRONORE/
The world's biggest iron ore miner Vale SA VALE3.SA faces production headwinds on tougher regulatory environment after a dam mishap, while BHP Group Ltd BHP.AX and Rio Tinto (LON:RIO) RIO.A have flagged lower output of the steel-making raw material following a cyclone in Western Australia.
Index heavyweights BHP and Rio Tinto put on 1.5 percent and 1.8 percent respectively, while another major iron ore miner Fortescue Metals Group FMG.AX rose as much as 3.1 percent.
Australia's conservative government on Tuesday proposed tax cuts for low and middle-income earners and record spending on health and education while promising the first budget surplus in more than a decade, shaping its pitch for votes in an imminent federal election. agencies Moody's and Standard & Poor's left Australia's AAA ratings unchanged after the budget.
"The budget announcement had a positive influence on the market today, particularly in the sectors where funding was prominent," said Danial Moradi, equity strategist at Lonsec.
"Increased funding for general practitioner and imaging services is a clear positive for diagnostics providers," said UBS in a note.
Medical technology firm Nanosonics Ltd NAN.AX was the top percentage gainer on the healthcare index, advancing 1.8 percent.
Big healthcare players Cochlear Ltd COH.AX and CSL Ltd CSL.AX gained 1.3 percent and 1 percent, respectively.
The healthcare index .AXHJ tacked on 0.8 percent to its highest level since October 8, 2018.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 shed 0.7 percent or 71.57 points to 9,886.78, and is set for its first drop in seven sessions after scaling life highs multiple times over the past two weeks.
Telecommunications firm Spark New Zealand Ltd SPK.NZ was among the top percentage losers on the benchmark, slipping about 4 percent, after its top executive Simon Moutter stepped down.