MELBOURNE/WELLINGTON, March 17 (Reuters) - Australian shares rose 1.2 percent by midday, bolstered by renewed risk appetite after the U.S. Federal Reserve flagged it would raise rates more slowly than expected, which drove down the U.S. dollar, and stoked metals, gold and oil prices.
The S&P/ASX 200 index .AXJO had climbed 62 points to 5,181.10 as of 0223 GMT.
Mining and energy stocks mostly led the way higher, with miners BHP Billiton (LON:BLT) BHP.AX and Rio Tinto (LON:RIO) RIO.AX both up around 3 percent, while Fortescue Metals Group FMG.AX surged 7.4 percent.
The gold miners' index .AXGD jumped 5 percent.
Among oil and gas stocks, battered Santos Ltd STO.AX was the best performer, up 5 percent, while Woodside Petroleum WPL.AX rose 1.9 percent.
Top gainer was Myer Ltd MYR.AX , Australia's biggest department store chain, which jumped as much as 14 percent to a seven-month high after tweaking up its full year profit forecast. Big Four banks all rose more than 1 percent.
Irish healthcare software maker Oneview Healthcare Plc ONE.AX debuted on the Australian market at 3 percent above its offer price of A$3.58 and last traded at A$3.59.
For more individual stocks activity click on STXBZ
New Zealand's benchmark S&P/NZX 50 index .NZ50 was largely unchanged, up 2 points at 6,564.98, with Australia and New Zealand Banking Group ANZ.AX offsetting a drop in Steel and Tube STU.NZ .
Steel and Tube fell 3 percent after news the company had mistakenly put the name of an independent building product testing laboratory, Holmes Solutions, on batch testing certificates for one of its products, despite the fact that Steel and Tube did the tests itself.