* Aussie financials snap 6-day losing streak
* NZ hits record high in diminished trade
By Ambar Warrick
March 18 (Reuters) - Australian shares rose on Monday as stronger commodity prices lifted iron ore miners and gains on Wall Street boosted investor confidence.
The S&P/ASX 200 index .AXJO rose 0.3 percent or 17.5 points to 6,192.70 by 0019 GMT. The benchmark had ended flat on Friday.
Wall Street had surged on Friday as a report on progress in U.S.-China trade talks lifted sentiment.
China's state-run Xinhua news agency said Washington and Beijing were making substantive progress on trade talks, providing relief after news that a summit to seal a deal between the two sides would not happen in March. .N
Australia's metals and mining sub-index rose about 1.3 percent, with iron ore miners BHP Group BHP.AX , Rio Tinto (LON:RIO) RIO.AX and Fortescue Metals Group FMG.AX firming in the range of 1 percent to 3 percent.
Iron ore prices in China, Australia's largest resource market, rose on Friday amid reports of local steel mills being allowed to resume certain emission-heavy activities. IRONORE/
Gold stocks .AXGD also strengthened after bullion prices rallied overnight against a weaker dollar. Newcrest Mining NCM.AX , the largest gold producer in Australia, gained 1.2 percent. GOL/
Lithium miner Pilbara Minerals PLS.AX added about 1.4 percent after its board exercised an option to manufacture battery-making materials with steel-maker Posco 005490.KS by setting up a lithium processing plant in South Korea. stocks, the largest sector in Australia, tracked their Wall Street peers higher. The subindex .AXFJ added about 0.2 percent after a six-session losing streak.
Three of the big four banks were higher, while Commonwealth Bank of Australia CBA.AX , the largest, declined about 0.2 percent.
CBA agreed to withdraw from all proceedings with the Australian Taxation Office regarding certain research and development claims made in 2012 and 2013. stocks also lent some support, with contract miner CIMIC Group CIM.AX gaining more than 1 percent after its unit secured a A$1.7 billion ($1.20 billion) mining contract in Botswana. Zealand shares inched up to a record high in thin trade, with the benchmark S&P/NZX 50 index .NZ50 rising 0.2 percent or 15.69 points to 9,488.96.
Industrials and consumer stocks led gains, while a decline in financial stocks weighed down the index.
Flag carrier Air New Zealand AIR.NZ and milk producer Fonterra FSF.NZ FCG.NZ rose about 0.9 percent each, while the New Zealand-listed shares of Westpac Banking Corp WBC.AX dipped 2 percent.
Trading volumes in the region were at a fraction of their 30-day average.
($1 = 1.4120 Australian dollars)