Australian shares marginally higher

Australian shares ended marginally higher on Tuesday as gains in materials offset declines in financial stocks, with investors cautiously optimistic Democrat Hillary Clinton would win the US presidential election.

The S&P/ASX 200 index shed some early gains to end 0.13 per cent higher at 5,257.8.

The ASX 300 Metals and Mining Index closed up by nearly 2.0 per cent, hitting a 17-month high, propelled by a rise in metal prices.

Nickel miners Independence Group NL and Western Areas Ltd were among the top gainers on the metals index backed by a rise in nickel prices.

BHP Billiton Ltd rose 2.6 per cent and was top contributor to both the benchmark and metals indexes.

Financials were the biggest drag on the index with Commonwealth Bank of Australia and Westpac Banking Corp falling 0.6 and 0.8 per cent, according to a news agency report.