Australian shares ended higher on Thursday led by financial stocks, as weaker-than-expected domestic growth data boosted rate cut bets, while the U.S. Federal Reserve Chair reassured investors of monetary policy easing later this year.

The S&P/ASX 200 index closed 0.4% higher at 7,763.70 points. The benchmark closed at 0.1% on Wednesday.

Data on Wednesday showed Australia’s economy grew at a slower-than-expected pace in the fourth quarter, confirming that aggressive rate cuts by the Reserve Bank of Australia have succeeded in dampening consumer demand.

Globally, market sentiment was buoyed by Fed Chair Jerome Powell’s reassurance that rate cuts were on the cards this year, even as continued progress on inflation “is not assured”.

“I suspect we are moving towards 2-3 cuts but that is dependent on how inflation does in the H1. The risk remains that we get another inflation wave and cuts get delayed,” said Mathan Somasundaram, chief executive officer at Deep Data Analytics.

Australian shares inch lower as miners weigh; GDP print in focus

Rate-sensitive financials rose 0.6% to hit a more than 16-year high, with the “big four” banks gaining between 0.2% and 1%. Commonwealth Bank of Australia closed at a record high after climbing 0.8%.

Gold stocks advanced 1.8% as bullion prices hit a fresh record high.

Northern Star Resources gained 2.6%, highest in nearly two years.

Heavyweight miners ended flat with iron ore giants Rio Tinto and BHP Group dropping 2.4% and 1.1%, respectively, due to ex-dividend trade.

Among energy stocks, Woodside Energy dropped 2.7% on trading ex-dividend as well.

In other news, an Australian indigenous group won a legal challenge on appeal against Santos’ A$3.6 billion ($2.37 billion) gas extraction project near the town of Narrabri.

New Zealand’s benchmark S&P/NZX 50 index closed about 0.1% higher at 11,803.93 points.