Australian shares rebounded from losses on Thursday, led by gains in financials and mining stocks, while investors assessed the Federal Reserve's monetary policy decision, which signalled further delays in interest rate cuts.

The S&P/ASX 200 closed around 0.2% higher at 7,587 points. The benchmark lost 1.2% on Wednesday.

The Fed held interest rates steady overnight but said that recent disappointing inflation prints could delay rate cuts.

Investors now await the Reserve Bank of Australia's (RBA) monetary policy decision, due on May 7, for further cues on the domestic rate trajectory.

"We expect no change to the (RBA's) cash rate target and for the policy statement to continue to state that "the Board is not ruling anything in or out", analysts at Citi said.

The RBA governor could say that inflation is declining, but more work needs to be done, they added.

In Sydney, financials led sectoral gains, rising 0.7%, with the 'Big Four' banks ending between 0.5% and 1.5% higher, despite the National Australia Bank posting a 13% drop in its first-half profit on Thursday.

Miners gained 0.4% on the back of improving metal prices.

Top miners BHP Group and Fortescue rose 0.1% and 1%, respectively.

Gold stocks advanced 1%, with shares of Northern Star Resources, Evolution Mining and St Barbara up between 0.8% and 2%.

In contrast, energy stocks fell 0.5% after crude oil prices declined more than 3% on Wednesday to a seven-week low.

Sector heavyweights Woodside Energy and Santos slipped 1.2% and 0.8%, respectively.

Among other stocks, shares of Woolworths dropped 4.2%, their lowest closing level since May 2020, due to a slowdown in sales in its biggest segment.

Across the Tasman Sea, the New Zealand benchmark S&P/NZX 50 index advanced 0.05% to 11,874.04 points. (Reporting by Roshan Thomas in Bengaluru; Editing by Sonia Cheema)