Australia shares edge higher from seven-month lows as bargain hunters step in

March 13 (Reuters) - Australian shares eked out modest gains on Thursday, rebounding from a seven-month low, as investors took advantage of recent weakness to buy the dip after U.S. President Donald Trump's tariff debacle sent markets substantially lower.

The S&P/ASX 200 index .AXJO rose 0.2% to 7,803.9 points by 2332 GMT, following a 1.3% decline in the previous session that saw the benchmark close at its lowest level since August.

On Wednesday, the index fell as much as 7,733.50, marking a drop of more than 10% from its February 14 record high — just shy of confirming a technical market correction.

Investor sentiment was buoyed overnight after the release of closely watched U.S. inflation data, which reinforced expectations of interest rate cuts later this year.

However, markets continued to weigh the downside risks of an escalating global trade war, triggered by U.S. President Donald Trump's latest tariff measures.

Financial stocks .AXFJ snapped a seven-day losing streak, rising 0.2%, as Australia's "big four" banks posted modest gains. Commonwealth Bank of Australia CBA.AX, Westpac Banking Corp WBC.AX, National Australia Bank NAB.AX and ANZ ANZ.AX rose between 0.1% and 0.3%.

Mining stocks .AXMM were broadly flat, edging down 0.1%, as weaker iron ore prices weighed on sentiment. BHP Group BHP.AX slipped 1.2%, Rio Tinto RIO.AX lost 0.3% and Fortescue Metals Group FMG.AX shed 0.3%. IRONORE/

Gold stocks .AXGD climbed 1.6% as uncertainty surrounding global trade and easing inflation bolstered demand for safe-haven assets. Northern Star Resources NST.AX gained 1.4%, while Evolution Mining EVN.AX advanced 1.9%. GOL/

Technology stocks tracked gains on Wall Street, rising nearly 1%. Accounting software provider Xero XRO.AX climbed 1.2%, and logistics software firm WiseTech Global WTC.AX surged 1.7%.

Consumer staples .AXSJ added 0.5%, supported by defensive buying, while real estate stocks .AXRE rose 1.5% as lower bond yields lifted appetite for interest-sensitive sectors.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.3% to close at 12,285.28 points.

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