News: RIO Australian shares climb as slow economic growth allays rate-hike fears

	  ASX 200 jumps most in over 1-year  

	  ASX 200 ends at 2-1/2-month high  

	  Analysts see RBA rate cut sooner than expected  

	  Australian economic growth misses estimates 

(Updates to close)

Australian shares clocked their biggest jump in more than a year on Wednesday led by financials and miners, as optimism grew that the country's central bank was done with its interest rate hikes after data showed the economy barely grew in the third quarter.

The S&P/ASX 200 index (xjo) closed up 1.7% at 7,178.40, its highest level since Sept. 20. The benchmark jumped as much as 1.9% during the session, its biggest jump since Nov. 11, 2022.

Earlier this week, the Reserve Bank of Australia (RBA) held cash rates steady at its year-end policy meeting on Tuesday.

Moreover, data showed earlier in the day that the country's real gross domestic product (GDP) rose 0.2% in the September quarter, missing forecasts of 0.4%.

These signals suggest the RBA might be done with its rate hiking cycle, while increasing the likelihood of a rate cut coming in sooner than expected, said Tony Sycamore, a market analyst at IG Australia.

"The rates market sees the RBA's peak terminal rate at 4.35%. There is now a 50% chance of a 25 bp (basis points) rate cut by June next year and a full 25bp cut priced for November 2024."

Interest rate-sensitive financial stocks .AXFJ gained 1.7%, closing at a 2-1/2-month high.

The "Big Four" banks rose between 1.3% and 1.9%, with Commonwealth Bank of Australia (CBA) hitting a more than 4-month high.

Heavyweight miners .AXMM climbed 1.2%, tracking a rise in iron ore prices buoyed by persistently strong demand. IRONORE/

Sector majors BHP (BHP) and Rio Tinto (RIO) jumped 1.5% and 0.7%, respectively.

Bucking the trend, gold stocks .AXGD dropped 1.6% with Evolution Mining (EVN) topping losses on the sub-index after a discounted placement offer.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index (nz50) rose 0.9% to finish at 11,463.49.