News: XIJ Australian shares rebound on boost from banks, tech

June 23 (Reuters) - Australian equities climbed on Thursday after closing slightly lower in the previous session, as gains in financial and tech stocks outweighed losses in mining and energy shares.

The S&P/ASX 200 index (xjo) rose 0.59% to 6,546.7 by 0059 GMT. The benchmark had ended 0.23% lower on Wednesday.

Wall Street's main indexes had erased losses overnight after Federal Reserve Chair Jerome Powell's comments on the central bank's aim to bring down inflation, but then they faded into the close.

Recession worries, however, appear to be paradoxically supporting the stock market by halting the climb in bond yields, which relieves concerns about share market valuations.

In Australia, financials .AXFJ advanced 1.1%, with the "Big Four" banks trading in positive territory. Commonwealth Bank of Australia (CBA) , the country's biggest lender, climbed 0.5%, while National Australia Bank (NAB) led the gains, with a rise of 1.3% to a near two-week high.

Tech stocks .AXIJ jumped the most in a week, climbing 2.1%. ASX-listed shares of Block Inc (SQ2) advanced 4.3% to hit their highest in a week, while battery materials and tech firm Novonix (NVX) surged 3.1%.

Energy stocks .AXEJ skidded 2.5% to be the biggest laggards on the main index, after oil prices tumbled overnight as investors worried that Fed rate hikes could push the U.S. economy into recession, dampening demand for fuel.

Sector heavyweights Woodside Energy (WDS) and Santos (STO) declined 3.5% and 3.3%, respectively, with Santos hitting its lowest since March 17.

Mining stocks .AXMM fell 2.1% after benchmark iron ore futures tumbled on Wednesday as worries grew about steel oversupply in China, the world's biggest producer of the manufacturing and construction material.

Sector heavyweights BHP Group (BHP) , Rio Tinto (RIO) and Fortescue (FMG) dropped between 3.3% and 5.1%, with Fortescue hitting its lowest since Nov. 29.

Across the Tasman sea, New Zealand's benchmark S&P/NZX 50 index (nz50) rose 0.95% to 10,780.4.