Australian shares edged higher on Friday after declining for three straight sessions, buoyed by mining and gold stocks, while improving bets of the US Federal Reserve pausing interest rate hikes in its policy meeting next week also boosted sentiment.

The S&P/ASX 200 index rose 0.3% to 7,099.7 by 0042 GMT.

The benchmark index dropped 0.3% on Thursday. However, the benchmark was on track for its third consecutive weekly decline.

Globally, world stocks rose in the previous session as investors leaned toward bets that the Fed was likely to abstain from raising rates next week.

Locally, investors are pricing in another rate hike by the Reserve Bank of Australia by September-end to 4.35%, following a surprise hike on Tuesday and then hold policy for the rest of the year, according to economists in a snap Reuters poll.

In Sydney, heavyweight miners led the gains on benchmark, rising 0.8%, as iron ore extended a rally on persistent China stimulus hopes.

Sector majors BHP Group and Fortescue Metals Group rose as much as 1.7% and 1.5%, respectively.

Australian shares inch higher ahead of GDP data, miners top gainers

Local gold and tech stocks climbed 1%, each, with country’s largest gold miner Newcrest Mining gaining about 1% and Software solutions company WiseTech Global firming 2%.

On the other hand, energy sub-index declined 0.4% as oil prices eased overnight after the US and Iran both denied a report that they were close to a nuclear deal.

Index heavyweights Santos and Woodside Energy declined 1.1% and 0.7%, respectively.

Nickel Industries was the top gainer on the benchmark, surging 11.6% after saying it planned to raise $633.32 million and had executed an agreement to reduce its investment in the Excelsior Nickel Cobalt project in Indonesia.

In New Zealand, the benchmark S&P/NZX 50 index fell 0.3% to 11,715.74.

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