Australian shares rose on Wednesday, boosted by a rally in the financial and energy sectors, ahead of GDP data expected later in the trading day, despite bleak cues from the Wall Street session overnight.

The S&P/ASX 200 index climbed 5.8 points, or 0.1%, to 7,217 by 0100 GMT.

The index slid 1% on Tuesday.

Elsewhere in Asia, Japan’s Nikkei was up 0.5% to 27,425.77, while Wall Street’s S&P 500 E-minis futures were 0.5% higher.

Australia’s GDP in the first quarter is expected to have grown 2.9% year-on-year, according to a Reuters poll - a slower rate than the 4.2% growth recorded in the fourth quarter of 2021.

Australian banks rose 1%, with No. 1 and No.2 lenders Commonwealth Bank of Australia and National Australia Bank climbing 1.4% and 1% respectively, pulling the benchmark higher.

Australian shares post biggest monthly drop in four on subdued data

The local currency was also stronger, lending further support to banks.

Local energy stocks also gained 0.4%, tracking a spike in oil prices, after the European Union announced it will cut 90% of imports of Russian oil. Santos Ltd rose as much as 0.6%.

The energy producer said it would supply gas to Yara Pilbara Fertilisers’ liquid ammonia plant, in addition to working with the firm on decarbonisation initiatives.

However, energy retailer Origin Energy fell as much as 13.6% after it withdrew its earnings guidance for the next financial year due to volatility in coal markets as well as supply chain delays disrupting its operations.

Origin Energy’s stock was also the biggest drag on the benchmark index.

New Zealand’s benchmark S&P/NZX 50 index rose 0.2% to 11,334.42 by 0100 GMT.