May 29 (Reuters) - Australian shares rose on Monday in a broad-based rally, after U.S. President Joe Biden said a debt ceiling deal was ready to move to Congress for a vote, ending a months-long stalemate.

The S&P/ASX 200 index advanced 1.1% to 7,220.80 by 0055 GMT, posting its biggest intraday percentage gain in nearly seven weeks. The benchmark shed 1.5% last week.

Heavyweight mining stocks led gains on the bourse, rising 1.6%. Sector majors BHP Group and Rio Tinto gained 1.9% and 1.7%, respectively.

Financial stocks climbed 1.2%, with the so-called "big four" banks rising about 1.2% each.

U.S. President Joe Biden and House Speaker Kevin McCarthy on Saturday reached an agreement in principle to suspend the $31.4 trillion debt ceiling. Both leaders expressed confidence on Sunday that members of the Democratic and Republican parties will vote to support the deal.

The deal preventing the U.S. government from defaulting on its debt - which would have been a first in history - came after weeks of heated negotiations. It still needs to pass through a narrowly divided Congress before June 5.

Energy stocks rose as much as 1.5% to touch their highest level since early March after oil prices rose.

Woodside Energy added 1.4% and Santos advanced 1.3%.

In corporate news, AMP Ltd said Blair Vernon would take over from Peter Fredricson as its chief financial officer and its local wealth management arm would be dissolved in an attempt to simplify the organizational structure. Its shares gained 0.9%.

Shares of Leo Lithium Ltd rose as much as 14% to hit an all-time high after the lithium producer signed a deal with China's Ganfeng Lithium Group to raise A$106 million and cooperate for the ramp-up of its Goulamina project.

In New Zealand, the benchmark S&P/NZX 50 index rose 0.6% to 11,897.28. (Reporting by Ayushman Ojha in Bengaluru; Editing by Subhranshu Sahu)