* Australian energy stocks see best session since Oct 2008
* Growth in coronavirus cases slows in Australia
* Gold stock in the red, Northern Star down 3.1%
By Shreya Mariam Job
April 1 (Reuters) - Australian shares kicked off the new quarter in positive fashion by rising 3% on Wednesday, as investors hoped unprecedented stimulus unleashed by governments and central banks around the world would soften the coronavirus' devastating economic impact.
The S&P/ASX 200 index .AXJO was up 2.2% at 5,188 by 0122 GMT, after Tuesday's 2% drop. The benchmark fell 24% last quarter, its biggest since 1987.
Australia, like many other countries, has closed borders and initiated virtual lockdowns to control the spread of coronavirus that has infected more than 4,500 and killed 20.
The rate of growth in new infections has slowed to just under 10% over the past three days, from 25%-30% a week ago, raising hopes that Australia is starting to "flatten the curve". government is pumping A$320 billion into the economy through various stimulus measures, while the central bank has slashes interest rates to record lows, and gone down the road of quantitative easing for the first time ever.
Still, economists expect the country's A$2 trillion economy to slip into its first recession in almost three decades because of the pandemic. one extreme are those who think the market represents good value right now, at the other those who see more pain and substantial falls to come," said Michael McCarthy, chief market strategist at CMC Markets.
"This vehement disagreement is producing the wild market swings as the balance between the two groups shifts."
Australia's beaten-down energy stocks .AXEJ drove the gains on Wednesday, rising as much as 9.3% in their biggest intraday gain since October 2008.
Top gas producer Woodside Petroleum WPL.AX and Santos Ltd STO.AX rose 8.4% and 10.2% after declining 35% and 50%, respectively, in March.
All the Big Four banks were in positive territory, with Commonwealth Bank of Australia CBA.AX up 1.8%.
Mining stocks .AXMM climbed as much as 2.9%, recovering most of their losses from the previous session, helped in part by stronger iron ore prices.
Global miners BHP Group Ltd BHP.AX and Rio Tinto (LON:RIO) Ltd RIO.AX rose 2.9% and 4.2%, respectively.
Minutes released earlier showed the Reserve Bank of Australia was worried about the potential for a "very material contraction" in economic activity. stocks .AXGD were the only losers, with a drop of about 0.7%. Northern Star Resources NST.AX slipped 3.1% and Ramelius Resources RMS.AX was down 5.9%.
New Zealand's benchmark S&P/NZX 50 index .NZ50 rose 1.1%, or 104.47 points, to 9,901.22.
Air New Zealand AIR.NZ gained 4.1%, while Genesis Energy GNE.NZ rose 6.2%.