By Rushil Dutta
Aug. 30 (Reuters) - Australian shares bounced on Tuesday, supported by overnight strength on Wall Street and upbeat U.S. consumer spending data, with gains in the financial sector leading the way.
The S&P/ASX 200 index .AXJO rose 28.2 points, or 0.5 percent, to 5497.6 by 0245 GMT, after hitting its lowest in over a month in the previous session due to concerns of a near-term U.S. interest rate hike.
But strong U.S. consumer spending, which accounts for more than two-thirds of U.S. economic activity, lifted the mood. are now turning their attention to U.S. payroll data later on Friday to gauge if the Federal Reserve might be in a position to raise rates before year-end. ECONUS
"It is basically a relief rally from yesterday," said Mathan Somasundaram, a quantitative strategist with Baillieu Holst.
"We are getting a bit of a bounce from the big four banks. But I would expect that as the day goes by we would probably start selling off again and take some profits and probably end up with a small positive day."
Financials, the biggest constituent on the index, added 0.5 percent with Commonwealth Bank of Australia CBA.AX and National Australia Bank NAB.AX gaining 0.6 percent and 0.8 percent respectively.
The banking sector has been under pressure recently due to slowing earning growth and pressure on margins.
Gains in basic materials were led by Evolution Mining EVN.AX , which was 5.3 percent higher as gold rebounded from a near five-week low. GOL/
Fortescue Metals FMG.AX gained 3.5 percent on the back of S&P upgrading its rating outlook. stocks gained as oil futures edged up on a weaker dollar. O/R .DXY
Oil explorer Oil Search Ltd OSH.AX posted a 2 percent gain.
For more individual stocks activity click on STXBZ
New Zealand's benchmark S&P/NZX 50 index .NZ50 was 0.24 percent or 18 points higher at 7385.26.
The rally was led by industrials and utilities with Auckland International Airport AIA.NZ heading the gains.
Medical devices maker Fisher & Paykel Corp FPH.NZ and electricity generator and supplier Meridian Energy Ltd MEL.NZ were among the biggest gainers on the main index.