Australian shares rise on banks, energy boost; Fed meeting in focus

May 4 (Reuters) - Australian shares rose on Wednesday, lifted by banking and energy stocks, with investors awaiting the U.S. Federal Reserve's interest-rate decision and its approach to tame sky-high inflation.

The S&P/ASX 200 index was up 0.6% at 7,360.20 points by 0019 GMT, after falling 0.4% on Tuesday.

Markets expect the Fed to hike rates later on Wednesday by 0.5 basis points — the biggest since 2000 — just a day after the Australian central bank delivered its first rate increase in over a decade.

Domestic energy stocks jumped 1.6%, as oil prices climbed after drawdowns in U.S crude and fuel stockpiles sparked supply worries.

Heavyweights Woodside Petroleum and Santos added more than 1% each, while Beach Energy gained up to 2.3%.

Financials rose 0.5%, with Australia and New Zealand Banking Group gaining up to 2% as the bank beat estimates for first-half profit and forecast improved second-half margins.

Commonwealth Bank, Westpac Banking Corp, and National Australia Bank advanced nearly 1% each.

Australian banks also raised their home loan variable interest rates by 0.25% per annum, after the country's central bank hiked its cash rate to 0.35% and warned of more to come.

Miners were up 0.7%, with heavyweights BHP Group and Rio Tinto up 0.7% and 0.8% respectively.

Firm bullion prices boosted gold stocks by 1%, with the country's largest gold miner Newcrest Mining leaping 0.4%.

However, tech stocks fell 0.5%. ASX-listed shares of Block Inc slipped 2.3% and was among the top losers on the sub-index.

In New Zealand, the benchmark S&P/NZX 50 index was up 0.2% at 11,697.97.

(Reporting by Navya Mittal in Bengaluru; editing by Uttaresh.V)