* ASX hits more than two-month high
* Energy stocks up on oil rally
* Miners gain as China iron ore inventory drops to 3-year low
* NZ benchmark hits near 10-week peak
By Arpit Nayak
May 19 (Reuters) - Australian shares on Tuesday advanced to their highest in more than two months, tracking overnight gains in Wall Street, as an early-stage data for a potential COVID-19 vaccine lifted hopes of a faster economic recovery from the pandemic fallout.
The S&P/ASX 200 index .AXJO was up 1.9% at 5,565.9, as of 0105 GMT, touching its highest since March 12.
Wall Street posted overnight gains following encouraging news about drugmaker Moderna Inc's MRNA.O trial, while the S&P 500 .SPX finished at a 10-week high. .N
News of favourable results about a potential vaccine, coupled with the easing of lockdown measures across the globe, supported a rise in oil prices and helped energy stocks .AXEJ gain up to 5.7%. O/R
Top natural gas producer Woodside Petroleum WPL.AX gained 5.4%, while Santos STO.AX climbed 8.2%.
Financials .AXFJ also gained 3.3%, led by Westpac Banking Corp WBC.AX and National Australia Bank NAB.AX .
Australian shares of James Hardie Industries JHX.AX surged 14.4% after the cement products maker reported a 17% jump in full-year adjusted net operating profit. giants BHP Group BHP.AX and Rio Tinto (LON:RIO) RIO.AX led gains on the mining sub-index .AXMM , helped by a surge in iron ore futures as port inventory of the steelmaking raw material in China, the world's top steel producer, dropped to the lowest in more than three years. IRONORE/
However, the spurt in appetite for risk assets saw gold stocks .AXGD drop 3.5% amid weaker bullion prices. GOL/
New Zealand's benchmark S&P/NZX 50 index .NZ50 was up 0.8% at 10,839.97, touching its highest in near 10 weeks.
Domestic shares of Westpac Banking Corp WBC.NZ and Australia and New Zealand Banking Group ANZ.NZ rose 4.1% and 3.5%, respectively.
Media firm NZME Ltd NZM.NZ fell 6.1% after dropping its bid to buy major competitor Stuff.