Australian shares snap 7-day losing streak after RBA douses recession worries

June 21 (Reuters) – Australian equities snapped a seven-session losing streak on Tuesday, led by energy and financial stocks in broad-based buying after the central bank said it does not see a recession on the horizon.

The S&P/ASX 200 index .AXJO rose 1.13% to 6,506.3 by 0055 GMT after shedding 9.7% in the previous seven sessions.

Australia’s top central banker said he expected to discuss hiking interest rates by either 25 or 50 basis points at the July policy meeting, downplaying the possibility of a larger hike. nS9N2WQ04G

Energy stocks .AXEJ rose 3.1% to be the biggest gainers on the main index. Oil prices rose 1% in early trade as the focus returned to tight supply of crude and fuel products versus concerns about a recession hitting demand down the track. O/R

Sector heavyweights Woodside Energy WDS.AX and Santos STO.AX jumped 2.7% and 1.8%, respectively.

Mining stocks .AXMM rose 2.3% even after benchmark iron ore prices slumped by their 11% limit on Monday as fears grew about a collapse of steel consumption in top user China. IRONORE/

Sector heavyweights BHP Group BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX advanced between 2.3% and 3.1%, with Fortescue set for its best day since June 3.

Financials .AXFJ rose 2.1%, with the “Big Four” banks trading in positive territory. Commonwealth Bank of Australia CBA.AX, the country’s biggest lender, advanced 2%, while National Australia Bank NAB.AX led gains with a rise of 2.8%.

Across the Tasman sea, New Zealand’s benchmark S&P/NZX 50 index .NZ50 rose 0.58% to 10,649.3.

(Reporting by Riya Sharma in Bengaluru; Editing by Subhranshu Sahu)

((Riya.Sharma@thomsonreuters.com;))

For more information on DIARIES & DATA: U.S. earnings diary  RESF/US   Wall Street Week Ahead   .N/O Global Economy Week Ahead DATA/ ................................................................ For latest top breaking news across all markets          NEWS1