ASX 200 ends 1.6% higher Gold stocks up 4.5%, miners 2.2% New...

	  ASX 200 ends 1.6% higher 

	  Gold stocks up 4.5%, miners 2.2% 

	  New Zealand CPI data due on Wednesday 

(Updates to close)

Australian shares logged their best day in over six months on Thursday, boosted by commodity stocks as pressure mounts on China to inject fresh stimulus, while a surprisingly low U.S. inflation reinforced bets of an end to the rate hiking cycle.

The S&P/ASX 200 index (xjo) rose 1.6% to close at 7,246.9 points, marking its third session of gains. The benchmark gained 0.4% on Wednesday.

Local commodity stocks jumped as the country's largest trade partner, China's exports fell the most in three years in June, amid signs of stress in the global economy and growing pressure on Beijing to roll out stimulus measures.

Moreover, overnight, the much-watched U.S. consumer inflation report provided better news than markets had hoped for. The data underscored expectations the Federal Reserve may let interest rates stand after one more 25 basis point hike expected at its July policy meeting.

"Interest rates are now on freeze by the RBA (Reserve Bank of Australia), and this is a very strong relief rally," said Brad Smoling, managing director at Smoling Stockbroking.

With an economic stimulus from China, there could be an upturn in held-back stocks such as BHP Group (BHP) , Fortescue Metals (FMG) , Rio Tinto (RIO) , Smoling added.

Gold stocks .AXGD led gains, surging 4.5%, their biggest intraday jump since March 20, tracking one-month high bullion prices.

Top gold miners Northern Star Resources (NST) and Newcrest Mining (NCM) climbed 4.3% and 3.7%, respectively.

Mining stocks .AXMM rose 2.2%. Sector-majors BHP and Rio Tinto advanced 1.5% and 3%, respectively.

Heavyweight banks .AXFJ advanced 1.1%. The so called "big four" banks added between 0.5% and 1.4%.

Energy stocks .AXEJ were up 1.1%, with Woodside Energy (WDS) and Santos (STO) , rising 1.3% each.

New Zealand's benchmark S&P/NZX 50 index (nz50) advanced 0.9% to 12,013.43, a day after the country's central bank kept the cash rate steady at 5.5%.

Analysts at ANZ expect New Zealand's annual CPI inflation to decline to 5.9% in the second quarter. The data is due on July 19.