Australian shares climb to one-week high as easing U.S.-Iran tensions lift sentiment

June 12 (Reuters) - Australian shares hit a one-week high on Friday, with gold and mining stocks leading gains as easing U.S.-Iran tensions boosted risk appetite after U.S. President Donald Trump called off planned strikes on Iran.

The S&P/ASX 200 index .AXJO rose 1.8% to 8,789.10 by 0032 GMT, its highest level since June 3. The benchmark was also set to log its best week since mid-April. It fell 0.2% on Thursday.

Investors capped out a week marked by swings in Middle East tensions, with sentiment improving overnight after Trump said a peace deal with Iran could be signed as soon as this weekend, potentially reopening the Strait of Hormuz, although Tehran said no final decision had been made.

Markets remain focused on developments, as any disruption to oil supplies could rekindle global inflation concerns.

However, in Australia, softer monthly jobs and inflation prints strengthened expectations that the Reserve Bank of Australia will leave rates unchanged at its meeting on Tuesday after three rate hikes earlier this year. 0#AUDIRPR

Gold stocks .AXGD led gains and jumped as much as 6.3%, on track for their best session in two months. Evolution Mining EVN.AX and Northern Star Resources NST.AX added 6.3% and 4.7%, respectively.

Following suit, miners .AXMM advanced 3.8%, on track to log its best day since April 8. Bellwethers BHP Group BHP.AX, Rio Tinto RIO.AX and Fortescue FMG.AX gained between 1.7% and 2.3%.

Financials .AXFJ rose 1.8%, with the "Big Four" banks up between 1.1% and 1.7%.

Technology stocks .AXIJ tracked their overseas peers higher and climbed 2.1%.

Bucking the trend, energy stocks .AXEJ fell 2% and was set to mark its worst week since late May.

Oil and gas firm Santos STO.AX lost 1.6%.

Woodside Energy WDS.AX shed 2.3%. The company said it exercised its pre-emptive right to acquire PetroChina's 601857.SS 10.67% stake in the Browse gas fields off the coast of Western Australia, blocking a deal agreed with Japan's Inpex 1605.T.

In New Zealand, the benchmark S&P/NZX 50 index .NZ50 rose 0.7% to 13,291.46.


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