Australian shares rise as miners gain, Fed rate cut boosts sentiment

By Anjali Singh

Dec 11 (Reuters) - Australian shares ended higher on Thursday with miners leading the gains on strong commodity prices, while broader sentiment improved after a widely expected U.S. rate cut.

The S&P/ASX 200 index .AXJO closed 0.2% higher at 8,592 points. The benchmark fell 0.1% on Wednesday.

The U.S. Federal Reserve trimmed rates by 25 basis points on Wednesday, as expected, and delivered a less hawkish outlook than some had anticipated.

The move comes just days after the Reserve Bank of Australia ruled out any further cuts and flagged the possibility of a rate hike if inflation remains elevated.

"The market's starting to come to terms with the fact that bad news is behind us," said Jessica Amir, market strategist at online trading platform moomoo, adding that investors know inflation is going be sticky for some time and the RBA is not coming to the rescue.

"Markets are really excited that the Federal Reserve cut interest rates and policymakers see another cut coming," she said.

Meanwhile, data showed Australian employment fell in November, while annual jobs growth slowed sharply from earlier this year, a sign the labour market is cooling.

Miners .AXMM climbed 0.7%, supported by robust iron ore and copper prices. BHP BHP.AX and Rio Tinto RIO.AX rose 1.3% and 1.8%, respectively.

Financials .AXFJ advanced 0.3%. Three of the 'Big Four' banks added between 0.4% and 1.3%, while Commonwealth Bank of Australia CBA.AX fell 0.7%.

The sub-index slipped 7.4% in November, with softer earnings reports highlighting persistent competition and rising costs.

"The big four banks have always recovered from a market crash, so I don't suspect that this time will be any different," Amir said, noting that potential interest rate increases could be good for the sector because they can help boost profit margins.

Real estate stocks .AXRE rose 0.6% and technology .AXIJ declined 1.5%.

New Zealand's benchmark S&P/NZX 50 index .NZ50 ended 0.2% higher at 13,395.87 points.