Australian shares ended a three-day losing streak on Wednesday, with mining and financial stocks leading gains, as fears of a global banking crisis eased, while cooling US inflation raised hopes of smaller rate hikes by the Federal Reserve.

The S&P/ASX 200 index rose 0.7% to 7,057.60 by 2322 GMT.

The benchmark fell 1.4% on Tuesday. Data showed that US consumer prices rose at an expected monthly pace in February, raising bets of a smaller 25 basis-point hike in key interest rate by the Fed at its policy meeting next week.

Banking stocks around the world rebounded after losing hundreds of billions of dollars in value this week after the collapse of major US-based lender SVB Financial Group.

Financial stocks in Sydney, too, jumped 1.2%, in their best day in more than a week. The so-called ‘Big Four’ banks advanced between 1.5% and 2%.

Technology stocks rose 2.4%, tracking gains in their Wall Street peers, with Block Inc’s ASX-listed shares gaining 4.1% and Xero rising 2.3%. The mining sub-index advanced 0.9%. Sector majors Rio Tinto and BHP Group rose 1.2% and 0.9%, respectively. Gold stocks slumped more than 2% after a three-session rally.

Australia shares fall 1% on US bank collapse jitters

Gold prices fell on Tuesday after surging over 2% in the previous two sessions. Bellevue Gold plunged 9.7% and Northern Star Resources dived 2.3%. Energy stocks slid 0.7%, driven by a 4% plunge in the oil market on inflation worries.

Sector heavyweights Woodside Energy and Santos shed 1.4% and 0.9%, respectively. In New Zealand, the benchmark S&P/NZX 50 index broke a five-session losing streak and rose 0.3% to reach 11,627.92.

Official data showed that the country reported a current account deficit in the fourth quarter.