Australian shares end higher as Powell hints at rate hike slowdown

Australian shares ended higher on Thursday, in line with global markets, after the U.S Federal Reserve Chair opened the door to a slower pace of interest rate hike and as miners gained after some Chinese cities eased their COVID-19 curbs.

The S&P/ASX 200 index XJO closed 0.9% higher at 7,349.7 points in its third straight session of gains. The benchmark rose 0.4% on Wednesday.

Fed Chair Jerome Powell's comments on slower interest rate hikes and scaling back on them 'as soon as December' cheered investors who had feared a more hawkish stance.

Powell's comments "clearly had a positive impact on the local market because a less aggressive Fed likely means a less aggressive RBA, and equity traders like that," said Matthew Simpson, senior market analyst at City Index.

The Reserve Bank of Australia "doesn't want to hike rates any more than they need to, and the combination of a less-hawkish Fed and potential peak in inflation will be music to the RBA's ears."

Australian mining stocks XXMM jumped 2.6%, leading the gains on the benchmark as the easing of strict COVID-19 curbs in some cities in top steelmaker China, after recent protests, lifted demand sentiment for iron ore.

Iron ore behemoths BHP BHP and Fortescue FMG added more than 2% each.

Separately, data showed Australian business investment dipped unexpectedly in the third quarter as miners cut back on new equipment, though firms affirmed plans for solid spending in the year ahead.

Strong bullion prices led gold stocks XGD to climb up as much as 4.9%, their biggest intraday jump in over five months. The country's largest gold miner Newcrest Mining (NCM.AX) advanced 4.6%.

In New Zealand, the benchmark S&P/NZX 50 index NZ50G closed 0.9% higher at 11654.56.