Sept 27 (Reuters) - Australian shares edged up on Tuesday, boosted by mining and energy stocks, as investors took a breather after a sharp selloff spurred by expectations of higher interest rates by the U.S. central bank raised fears of an economic slowdown.

The S&P/ASX 200 index advanced 0.5% by 0016 GMT. The benchmark hit a three-month low on Monday and has lost about 3.4% since the U.S. Federal Reserve last week hiked interest rates by 75 basis points for the third consecutive time.

Investors back home took a breather after a steep sell-off, even as markets globally continued to show weakness after U.S. Fed officials sloughed off rising volatility in global markets, and said their priority remained controlling domestic inflation.

Miners led the gains, jumping 1.8% with iron ore behemoths BHP and Rio Tinto up over 1% each.

Energy Stocks rose 1.7%, with oil and gas major Woodside Energy gaining 1.2%.

Santos rose 1.4% after the gas explorer said it received a $1.4 billion binding offer from Papua New Guinea's state-owned Kumul Petroleum for a 5% stake in the PNG liquefied natural gas project.

Financials and tech index were marginally down 0.02% and 0.06%, respectively.

Gold Stocks jumped 0.6%, with the country's largest gold miner Newcrest Mining advancing 1%.

Separately, Star Entertainment gained 0.8% after it had developed a comprehensive remediation plan, after an inquiry found the casino operator unfit to hold a casino licence in Sydney.

Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50 index dropped 0.5% to 11,376.33.

The country's finance minister Grant Robertson said inflation is likely to moderate but it won't be a quick drop back to the levels that people are used to seeing. (Reporting by Navya Mittal in Bengaluru; Editing by Rashmi Aich)