Australian shares rose on Wednesday, tracking Wall Street, while data at home showing the economy last quarter expanded at its fastest annual pace in four years helped buoy sentiment.
The S&P/ASX 200 index (xjo) was 10.8 points, or 0.2 percent, higher at 5,424.4 at 0307 GMT.
The benchmark gained as much as 0.5 percent after the Australian Bureau of Statistics reported gross domestic product (GDP) in April-June rose 3.3 percent from a year earlier, just short of market forecasts but up from around 2.9 percent in the previous quarter.
On Tuesday, the benchmark lost 0.3 percent after the country's central bank held interest rates at a record low as expected, but provided no clues for future easing.
The U.S. economy's service sector expanded at a slower pace in August than July, and the fall from the previous month was the largest since the 2008 financial crisis, according to an industry report released on Tuesday.
The chances of a U.S. rate hike in September dropped to 15 percent, from 21 percent, after the data, according to CME Group's FedWatch tool.
Hawkish comments from some Fed officials recently increased the probability of a rate hike this year, but expectations declined since Friday's soft U.S. jobs report.
"I think there has been some response to the prospects of U.S. Fed not raising interest rates," said Ric Spooner, chief market strategist at CMC Markets.
Losses in Australian energy stocks were offset by substantial gains in cyclicals, basic materials and some financial stocks.
Gold miners posted massive gains with Northern Star Resources (NST) and Evolution Mining (EVN) adding 9 percent and 8 percent respectively, as gold held steady early on Wednesday after rising as much as 2 percent in the previous session. [GOL/]
Miner BHP Billiton (BHP) gained 0.5 percent while Rio Tinto Ltd (RIO) was flat.
Commonwealth Bank of Australia (CBA), the biggest of the "Big Four" banks, rose 0.5 percent.
The energy sector performed the worst as oil prices inched lower. Oil explorers Woodside Petroleum (WPL) and Oil Search Ltd (OSH) lost 1 percent and 1.7 percent respectively.[O/R]
New Zealand's benchmark S&P/NZX 50 index (nz50) rose to a record high, up 0.7 percent, or 49.3 points, at 7552.9.
The gains were driven by cyclicals, staples and utility. Dairy products maker A2 Milk (ATM) was the biggest gainer on the index rising 4.6 percent, while gaming business Skycity Entertainment (SKC) and telco Chorus Ltd (CNU) also added substantially at about 3 percent each.
