Miners, banks lead Australian shares higher ahead of RBA rate decision

May 20 (Reuters) - Australian shares climbed on Tuesday, driven by broad-based gains in mining stocks and banks, as investors awaited the Reserve Bank of Australia's policy decision later in the day.

The S&P/ASX 200 index was up 0.7% at 8,356.7, as of 0033 GMT. The benchmark closed 0.6% lower on Monday.

The Reserve Bank of Australia is set to deliver its closely watched interest rate decision later in the day. Economists surveyed by Reuters reckon the RBA will cut by 25 basis points, and market pricing indicates a 99.8% probability.

The financials sub-index gained 1.2%, with shares of National Australia Bank and Westpac up 1.7% and 1.6%, respectively.

ANZ and Commonwealth Bank of Australia advanced 1.2% and 1.1%, respectively.

The mining sector rose 0.6%, with shares of major miners BHP and Fortescue gaining 0.5% and 0.8%, respectively.

Rio Tinto said Chile's state-owned copper producer Codelco on Monday has selected the global mining giant as a partner for its Maricunga lithium project. Shares of Rio were up 0.7%.

Shares of gold miners St Barbara and Northern Star Resources were up 1.6% and 0.6%, respectively.

Energy stocks rose 0.6%, supported by Woodside Energy and Santos, up 0.2% and 0.8% respectively, as oil prices climbed on concerns over a potential breakdown in U.S.-Iran nuclear talks, dimming prospects for increased Iranian oil supply.

In company news, Australia-based enterprise software firm TechnologyOne surged 10%, becoming the benchmark's top gainer after reporting a 31% increase in first-half results and raising its fiscal 2025 profit outlook to 13% to 17%.

New Zealand's benchmark S&P/NZX 50 index rose 0.6% to 12,702.42.

Around the globe, Japan's Nikkei was up 0.85%. The U.S. S&P 500 index and the Nasdaq were mostly steady on Monday.

(Reporting by Roshan Thomas in Bengaluru; Editing by Sherry Jacob-Phillips)