Australian shares rose on Thursday after a rebound in mining stocks provided some respite, although gains were limited as investors still fretted about a looming global recession.

The S&P/ASX 200 index was up 0.8% at 6,648.00 points.

The benchmark closed 0.5% lower on Wednesday. Equities were caught between growth worries and relief that a slowdown might apply brakes on aggressive rate hikes.

Traders also grappled with generally positive US economic data, with solid job openings, and hawkish minutes from the June US Federal Reserve meeting.

Miners climbed 2.6% after China iron ore futures rose 1.8% even as Beijing faces COVID-19 flare-ups in several areas, stoking concerns over further lockdowns.

“I think mining stocks are still presenting a really good value despite what may or may not happen within China because prices are still high,” said Brad Smoling of Smoling Stockbroking.

The mining triumvirate - Rio Tinto, BHP Group and Fortescue Metals - climbed between 4.4% and 3.1%. Financials gained 0.9% with three of the “Big Four” banks climbing between 1.8% and 0.8%.

Australian shares end higher on commodity boost; RBA hikes key rate

The gold sub-index emerged as an outlier with a 0.4% dip despite firmer bullion prices.

Energy stocks recovered from early losses to end the session flat as oil prices bounced back with investor focus shifting to prospects of tight supply. Woodside Energy was up 0.3%, while Santos finished 1.7% lower.

New Zealand’s benchmark S&P/NZX 50 index fell 0.3% to finish the session at 11,112.16 points.