By Colin Packham and Rebecca Howard
SYDNEY/WELLINGTON, March 2 (Reuters) - Australian shares rose 1.5 percent to an eight-day high on Wednesday as investors cheered data showing the domestic economy beat all forecasts to grow at its fastest in almost two years, while New Zealand stocks scaled a near two-month peak.
The S&P/ASX 200 index .AXJO rose 77.25 points to 4,999.5 points by 0105 GMT, building on a 0.85 percent gain on Tuesday.
Analysts said the market was drawing support from better than expected GDP figures, giving a boost to sentiment already brightened by upbeat U.S. economic data overnight. economy grew an unexpectedly fast 0.6 percent last quarter as gains in consumer and government spending offset the heavy drag from a global mining downturn. financials were the top performing sector in the S&P 500 overnight, and a lot of that bullishness has spilled over to Australia. We have had a strong performance from the banks, which make up 48 percent of the index market capitalisation," said Angus Nicholson, market analyst, IG Markets.
"After all this, Q4 Australian GDP beat estimates quite significantly, which adds fuel to the bullish view on the Australian economy."
Financials stocks rose 1.3 percent, leading Australia's benchmark higher. Australia and New Zealand Banking Group ANZ.AX rose more than 4 percent to a near one-month high of $24.07 a share, while Commonwealth Bank of Australia Ltd CBA.AX , Westpac Banking Corp WBKNZL.UL and National Australia Bank each rose more than 3 percent.
Energy companies received some support as the price of oil rose 2 percent on Tuesday, driving Woodside Petroleum Ltd WPL.AX to gains as much as 5 percent.
Miners Fortescue Metals Group FMG.AX , BHP Billiton (LON:BLT) Ltd BHP.AX and Rio Tinto (LON:RIO) Ltd RIO.AX all rallied more than 3 percent as the price of iron ore firmed.
New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 0.34 percent, or 20.56 points, to 6,302.29, near the session high of 6,309.88 - the highest since January 5.
Dual listed ANZ Bank ANZ.NZ and Westpac Bank WBC.NZ were the best performing companies.
ANZ said on Wednesday it would break up its global wealth division to focus on improving returns and capital efficiency in insurance and superannuation. biggest losers included Sky City SKC.NZ , down 1.4 percent.
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