Australian shares ended higher for a third consecutive session on Thursday, led by gains in tech stocks and financials, tracking the overnight rally on Wall Street after the U.S. Federal Reserve kept interest rates unchanged.

The S&P/ASX 200 index rose 0.9% to 6,899.7. The benchmark had gained 0.9% on Wednesday.

Overnight, the Fed held the policy rate steady in its current 5.25%-5.50% range.

Fed Chair Jerome Powell's comments fueled investor optimism that rate hikes were done even though the central bank left the door open for more.

Locally, investors awaited the Reserve Bank of Australia's (RBA) meeting on Nov. 7.

"Strong consumer price index (CPI) and retail sales should be enough to see further RBA tightening in November after four consecutive pauses," analysts at Bank of America said in a note.

BofA expects a 25-basis-point hike to take the cash rate to 4.35% with the RBA likely to retain its hawkish bias.

In Sydney, technology stocks jumped 3.2%, marking their biggest gain since Aug. 24, tracking the rise in the tech-heavy Nasdaq. Tech major Megaport gained 3%.

Financials climbed 1.4%, with the country's four large banks up between 1.5% and 2.1%.

Real estate shares closed 2.4% higher, with property major Charter Hall Group gaining 5%.

Heavyweight miners rose 0.5%, after iron ore extended gains for a second consecutive session on Thursday.

Sector majors BHP Group and Rio Tinto gained 0.4% and 1.1%, respectively.

Energy stocks fell 2% with Woodside Energy and Santos losing 2.5% and 3%, respectively.

Gold stocks fell 1.3%, with top gold miner Northern Star Resources dropping 2.6%.

In New Zealand, the benchmark S&P/NZX 50 index rose 1.8% to 11,044.44 points.

 

(Reporting by Ayushman Ojha; Editing by Mrigank Dhaniwala)