Australia shares climb 1 pct, gains across all sectors

Reuters - UK Focus

* Australian market nudges away from 4-week low, rises 1percent

* All sectors higher as flow-on from Wall Street boostsinvestor appetite (Adds analysis, quotes, stocks on the move)

By Thuy Ong and Naomi Tajitsu

SYDNEY/WELLINGTON, June 19 (Reuters) - Australian sharesclimbed 1 percent on Thursday, supported by a positive lead fromWall Street after the Federal Reserve said economic recovery wason track, although turmoil in Iraq kept investors in check.

Iraq has asked the United States for air support incountering Sunni rebels, the top U.S. general said on Wednesday,after the militants seized major cities in a lightning advancethat has routed the Shi'ite-led government's army.

Overnight, U.S. stocks rose with the S&P 500 ending at arecord after the Federal Reserve hinted at a slightly fasterpace of interest-rate increases starting next year but suggestedrates in the long run would be lower than it had indicatedpreviously.

The mining and banking sectors underpinned the market whichrose in a broad-based gain.

Among financials, Australia's top lender Commonwealth Bankof Australia added 0.9 percent, while Westpac Banking (Frankfurt: 854242 - news) Corp, Australia's no.2 biggest bank by marketcapitalisation, rose 1 percent.

The S&P/ASX 200 index jumped 54.5 points to 5,437.2by 0155 GMT. The benchmark fell 0.3 percent to hover at 4-weeklows on Wednesday.

Blue chips BHP Billiton Ltd and Rio Tinto Ltd (Xetra: 855018 - news) jumped 2.7 percent and 2.3 percent each, while IlukaResources Ltd added 0.7 percent.

Overnight LME copper traded near its highest in twoweeks at $6,735 a tonne, underpinned by a pledge from Chineseauthorities to support growth and by a lack of immediate supply.

"The Australian market is at a four-week low so there's abit of a price recovery," said Matt Sherwood, head of investmentmanagement at Perpetual in Sydney.

"I think valuations are stretched so I think it's going tobe hard for the market to continue to rally like this."

U.S. stocks rose on Wednesday, with the S&P 500 ending at arecord after the Federal Reserve hinted t a slightly faster paceof interest-rate increases starting next year but suggestedrates in the long run would be lower than it had indicatedpreviously.

Ten Holdings Ltd dropped 6.2 percent to 3-week lowsof A$0.27 after saying it expects its television revenue forFY14 to be approximately 3.5 percent to 4.5 percent lower thanthe prior year.

JB Hi-Fi Ltd climbed 1 percent after theelectronics and entertainment retailer increased its profitguidance with FY 2014 NPAT expected to be in the range of A$126million to A$129 million, up 8.3 percenjt to 10.8 percent.

Railway operator Asciano Ltd bounced 4.6 percentafter saying it will cut 500 jobs by the end of June to reducecosts by approximately A$90 million in the next financial year.

The benchmark NZX-50 index rose 3.8 points to5,188.30, boosted by a 4.3 percent rise in gold prospectorOceanaGold Corp on the back of higher gold prices.

Pumpkin Patch rose 2.3 percent to NZ$0.44, asinvestors picked up shares in the children's clothing companyfollowing its slide to an all-time low of $0.42 earlier in theweek.

Corporate software developer Diligent Board Member Services (NZSE: DIL.NZ - news) rose 2 percent to NZ$4.60. Shares have jumped roughly10 percent this week on optimism that the company will announcestrong first-quarter earnings on Friday.

Deep sea mining company Chatham Rock Phospate Ltd fell 20 pct to NZ$0.20 on slight volume after New Zealand's Environmental Protection Authority rejected a bid by anothermining company to mine the seabed for iron ore sands.

(Editing by Eric Meijer)

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