News: XGD Australia shares rise on mining, energy boost; inflation data, Fed in focus

July 25 (Reuters) -

Australian shares advanced on Tuesday, led by miners and energy stocks, although investors exercised caution ahead of local quarterly inflation data and the U.S. Federal Reserve's policy meeting, both due on Wednesday.

The S&P/ASX 200 index (xjo) rose 0.3% to 7,327.1 points by 0043 GMT. The benchmark ended 0.1% lower on Monday.

Australia’s second-quarter inflation data, due on July 26, will set the stage for the Reserve Bank of Australia's (RBA) policy meeting in August. The RBA had paused its rate hiking cycle in its previous meeting.

Analysts at ANZ Group expect both headline and trimmed mean inflation to moderate in the second quarter.

Globally, investors expect Fed to raise interest rates by 25 basis points at its policy making meeting on Wednesday.

In Sydney, heavyweight miners .AXMM led the gains with a 2.1% jump, after China on Monday announced more plans to revive its flagging economy, although Singapore iron ore futures dipped slightly.

Sector majors BHP Group (BHP) and Rio Tinto (RIO) gained 2.6% and 2.4%, respectively.

Local energy stocks .AXEJ rose 1.1% as oil prices extended gains, as signs of tighter supplies and pledges by Chinese authorities to shore up the world's second-biggest economy lifted sentiment.

Index heavyweights Santos (STO) and Woodside Energy (WDS) were up 0.8% and 1%, respectively.

Bucking the trend, banking stocks .AXFJ slipped 0.2%. The so called 'big four' banks are down between 0.1% and 0.8%.

Gold stocks .AXGD also edged 0.2% lower as traders braced for a widely-anticipated rate hike, along with clues on future monetary policy from the Fed this week.

The country's largest gold miner Newcrest Mining (NCM) reported a 9.1% sequential

rise in fourth-quarter

gold output. Its shares were up as much as 0.8%.

New Zealand's benchmark S&P/NZX 50 index (nz50) fell 0.5% to 11,955.15 points.