News: XGD Australian shares gain on commodity boost, US CPI cements Fed pause bets

	  ASX 200 benchmark up 0.5% 

	  Miners up 1.1%, Gold stocks up 1.2% 

	  Aug jobless rate steady at 3.7% 

(Updates to close)

Australian shares ended higher on Thursday, led by a boost in commodity stocks, a day after data showed a moderate increase in U.S. consumer prices in August, cementing bets that the Federal Reserve will pause rate hikes in September.

The S&P/ASX 200 index (xjo) closed 0.5% higher at 7,186.5 points. The benchmark lost 0.7% on Wednesday.

Data on Wednesday showed U.S. consumer prices increased by the most in 14 months in August as gasoline prices surged, but the annual rise in underlying inflation was the smallest in nearly two years, which could prompt the Fed to hold rates in its next meeting.

Locally, the country's employment surged in August while its participation rate hit a record high and the jobless rate held steady, in a sign that decade-high interest rates have yet to soften demand in the drum-tight labour market.

"The overall growth that we saw in the numbers today combined with the unemployment rate holding at 3.7%, I think it does keep alive the prospects that there could be more tightening from the RBA (Reserve Bank of Australia) to come," said Tim Waterer, chief market analyst at KCM Trade.

Further, "the big focal point across markets, particularly Asia, will be the raft of Chinese data tomorrow," Waterer added.

Investors await the country's biggest trade partner China's crucial industrial production and retail sales data for August, due on Friday.

Local miners .AXMM led the gains on the benchmark, closing 1.1% higher, as iron ore futures extended gains helped by low inventories and pre-holiday restocking.

Gold stocks .AXGD advanced 1.2% on higher gold prices as the dollar and Treasury yields weakened after U.S. inflation data. Top gold miner Newcrest Mining (NCM) rose 0.9%.

Financial stocks .AXFJ climbed 0.7%, while energy stocks .AXEJ added 0.4%.

New Zealand's benchmark S&P/NZX 50 index (nz50) finished 0.4% lower to end the day at 11,313.53 points.