Australian shares close to 20-month high with miners leading gains

Australian shares jumped to almost a 20-month high on Thursday on the back of expectations of the Federal Reserve beginning to cut interest rates next year.

The S&P/ASX 200 index climbed 0.5 per cent to 7,596.3 by 0018 GMT, and was helped by gains in financials and commodity stocks.

Benchmark index was up 1.2 per cent on Wednesday to hit the highest level since April 2022, before closing 0.8 per cent higher.

Heavyweight miners led gains consecutively for a third session, up 1 per cent led by strong base metals and iron ore prices.

Mining behemoths BHP Group, Rio Tinto and Fortescue advanced between 0.6 per cent to 0.9 per cent.

Gold stocks rose 1.2 per cent after bullion prices scaled a three-week high overnight on expectations of US interest rate cuts next year.

Australia's top gold miner Northern Star Resources and Evolution Mining gained 1.1 per cent each.

Energy stocks jumped 0.2 per cent, with Woodside Energy up 0.4 per cent, while Santos traded flat.

Rate-sensitive financials advanced 0.5 per cent with the "Big Four" banks gaining between 0.1 per cent and 0.5 per cent.

Technology stocks climbed 0.4 per cent as healthcare gained 0.1 per cent.

In New Zealand, the benchmark S&P/NZX 50 index rose by 0.4 per cent to 11,720.3.

(With Reuters Inputs)