Australian shares rose on Thursday, as index heavyweights banks rebounded on prospects of interest rates staying higher this year, and mining and gold stocks advanced on strong underlying commodity prices.

The S&P/ASX 200 index rose 0.6% to 8716.5, as of 0029 GMT.

The benchmark ended 0.2% lower on Wednesday.

The Aussie dollar was 0.1% weaker to A$0.68 against the US dollar on Thursday.

Inflation data released on Wednesday showed Australia’s inflation rate dropped to a three-year low in August, largely due to government-issued electricity rebates.

The Reserve Bank of Australia on Tuesday held its cash rate steady but maintained a hawkish stance, which prompted investors to further reduce expectations of a rate cut in December.

Financials were the top gainers on the benchmark, advancing 0.7%, after three consecutive sessions of losses, as a high interest rate environment generally boosts banks’ margins.

National Australia Bank and Commonwealth Bank of Australia rose 1.3% and 1%, respectively.

Miners gained 0.3% on strong iron ore prices, as a fresh batch of monetary easing policies from China boosted market sentiment, while lower global supply also lent support.

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Mining behemoths BHP Group and Rio Tinto added 0.2% and 1.1%, respectively.

Gold stocks advanced 1.1%, after bullion prices overnight soared to a record high. Gold miners Genesis Minerals and Northern Star Resources were up 0.5% and 0.9%, respectively.

Brickworks rose as much as 9%, emerging as the top gainer on the benchmark, after the brick maker’s underlying full-year results beat analyst estimates and declared a higher final dividend of 43 Australian cents per share despite a drop in results.

The US S&P 500 index was mostly unchanged on Wednesday, while Nasdaq gained 7.68 points, or 0.04%.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.9% to 12,340.09.