Australia shares climb to near one-month high as miners rally

Australian shares rose to a near one-month high on Wednesday, underpinned by commodity stocks after mining giant BHP hit a record high, while a slower-than-expected economic growth reaffirmed expectations of a temporary pause in rate hikes.

The S&P/ASX 200 index was up 0.4% at 8,754.70 points, as of 0138 GMT.

Earlier in the session, the benchmark touched its highest level since May 8, after closing flat on Tuesday.

Data from the Australian Bureau of Statistics on Wednesday showed that real gross domestic product (GDP) rose 0.3% in the first quarter, easing from a 0.9% jump the previous quarter.

Market forecasts were for 0.5%, but with downside risks. Annual growth slowed a tick to a still solid 2.5% pace.

The central bank judges the economy cannot grow much above 2.0% without generating inflation, leading it to raise rates three times so far this year.

Swaps indicate about 93% chance of the central bank keeping its key cash rate steady at 4.35% in June.

Domestic miners led gains, rising 1.8% to scale a record high.

The sub-index was on track for a fourth consecutive session of gains, if the momentum persists.

BHP Group drove the rally, climbing more than 2% to a record high on stronger copper and iron ore prices. Shares of Rio Tinto followed, climbing 2.3% to a record peak and was on course for their fourth consecutive session of gains.

Gold stocks tracked steady bullion prices, up 1.4%, with Northern Star Resources up 7%, as Morningstar backed the idea of a possible sale of the gold miner.

Energy stocks surged roughly 2%, as oil prices touched a one-week high.

Fuel retailer Ampol advanced more than 2% after the country’s competition regulator greenlit its $789 million acquisition of EG Australia.

Banks shed early gains to trade 0.2% lower, although only National Australia Bank was in the red among the “Big Four”.

In New Zealand, the benchmark S&P/NZX 50 index slipped 0.2% to 1,3167.35.