(Reuters) - Australian shares finished higher on Thursday, tracking gains on Wall Street after U.S. Federal Reserve chief Janet Yellen signalled only a gradual tightening of monetary policy.
The S&P/ASX 200 index <.AXJO>, recovering Wednesday's losses, rose 1.1 percent, or 62.97 points, to 5,736.80.
The benchmark closed at a three-week low in the previous session, falling nearly 1 percent to 5,673.8 - the second time this month it dropped below the psychologically important 5,700 level.
The Dow <.DJI> rose to a record high after Yellen's less hawkish than expected congressional testimony was seen as a green light for Wall Street to step up riskier trades. [.N]
Australia's financial index <.AXFJ> rose nearly 1 percent though U.S. counterparts <.SPSY>, which tend to benefit from higher rates, were last among sectors, closing up 0.1 percent.
The biggest banks by market value, Commonwealth Bank of Australia <CBA.AX> and Westpac Banking Corp <WBC.AX>, were among the top gainers on the benchmark by weight, up 1.9 percent and 0.5 percent respectively.
Biotherapeutics firm CSL Ltd <CSL.AX> was also among the top performers with its near 3 percent ascent helping the healthcare index <.AXHJ> have its best day since mid-January.
New Zealand's benchmark S&P/NZX 50 index <.NZ50> ended up 0.3 percent at 7,610.89, aided by industrial and healthcare shares.
Auckland International Airport <AIA.NZ> and Fischer & Paykel Healthcare Corp <FPH.NZ> were the benchmark's biggest gainers, 1.5 percent and 1 percent higher respectively.
(Reporting by Rushil Dutta in Bengaluru; Editing by Richard Borsuk)
