U.S. PPI data came in hotter-than-expected Miners hit highest...

	  U.S. PPI data came in hotter-than-expected 

	  Miners hit highest level since April 22 

	  Health stocks log fourth successive session of gains 

(Updates to close)

Australian shares rebounded on Wednesday, backed by a rally in mining stocks while Federal Reserve Chair Jerome Powell's reassurance over U.S. producer prices data kept rate-cut hopes up.

The S&P/ASX 200 index (xjo) closed 0.4% higher to 7,753.700. The benchmark had slipped 0.3% on Tuesday.

In the world's largest economy, producer prices came in hotter-than-expected, threatening investors' rate-cut hopes but Powell called the data "quite mixed" and said the next move wouldn't be a rate hike.

Traders waited for the crucial inflation measure, the U.S. CPI data, due for release at 1230 GMT.

In Sydney, market participants assessed the country's federal budget. The Australian government announced on Tuesday A$22.7 billion ($15.09 billion) funding package for domestic manufacturing and renewable energy.

In the resource-heavy bourse, bellwether miners .AXMM soared 1.4% after the budget promised funding for critical minerals. The sub-index hits its highest level since April 22.

"Good to see the focus... numbers are big and always impressive but we shall see what happens in real life," Henry Jennings, senior market analyst at Marcus Today said while talking about the promised funding for critical minerals.

Mining giant BHP Group (BHP) gained 2.5% while Rio Tinto (RIO) jumped 1.3%.

Rate-sensitive financials .AXFJ lost 0.3%. Three of the "Big Four" banks traded in the red while country's top lender Commonwealth Bank of Australia rose 0.3%.

Energy stocks .AXEJ lost 0.5%, with sector major Woodside Energy (WDS) falling 0.8%.

Health stocks .AXHJ gained 0.8%, with Australia's priciest stock CSL (CSL) rising 1.6%.

Real estate shares .AXRE rose 0.5% while information technology stocks .AXIJ added 0.4%.

New Zealand's benchmark S&P/NZX 50 index (nz50) fell 0.8% to finish the session at 11,525.88.

($1 = 1.5047 Australian dollars)