Australia shares hit more than 3-1/2-mth high, NZ shares edge lower

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 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 (Other OTC: ITGL - news) 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 Ltd rose nearly 3 percent to hit a five-month high, while Rio Tinto Ltd rose 3.5 percent to hit a high of nearly A$52 a share - the highest since October, 2015.

BHP Billiton (NYSE: BBL - news) 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.

While Australia's commodities sector enjoyed a strong start to the session, the country's financials segment weighed on the index.

Shares (Berlin: DI6.BE - news) in Australia and New Zealand Banking Group fell more than 1 percent, while Commonwealth Bank of Australia (Other OTC: CBAUF - news) and National Australia Bank Ltd fell nearly 0.5 percent.

New Zealand's benchmark S&P/NZX (Other OTC: NZSTY - news) 50 index edged down 0.13 percent, or 9.04 points, to 6,864.00 on Wednesday.

Accounting software company Xero (Frankfurt: 0XE.F - news) lost 1.43 percent, while casino operator Sky City fell 0.78 percent.

Mighty River Power (Stuttgart: MRY.SG - news) dropped 1.86 percent on some profit taking after the company's quarterly results met investors' expectations.

Dairy company A2 Milk 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 fund, which provides investor exposure to the farmer-owned dairy exporter, also rose a more modest 0.35 percent. (Reporting by Colin Packham in Sydney; Reporting by Charlotte Greenfield in Wellington; Editing by Simon Cameron-Moore)