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Australia shares rebound as Wall Street rallies on Fed minutes

* ASX 200 rebounds from 8-month lows, set to snap 3 sessions of losses

* 167 shares higher, 23 shares lower, 9 shares unchanged

* Employment fell 29,700 in September, though some market participants doubt reliability (Adds analysis, quotes, stocks on the move)

By Thuy Ong and Naomi Tajitsu

SYDNEY/WELLINGTON, Oct 9 (Reuters) - Australian shares climbed 1.3 percent on Thursday, rebounding from 9-month lows in the previous session as Wall Street soared after the U.S. Federal Reserve indicated it would not raise rates for a "considerable time".

The S&P/ASX 200 index rose 66.8 points to 5,308.1 by 0136 GMT. The benchmark fell 0.8 percent on Wednesday and looks set to snap three sessions of losses.

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Financials supported the rally ,with Westpac Banking Corp jumping 1.9 percent to two-week highs of A$32.88 and Commonwealth Bank of Australia (Other OTC: CBAUF - news) bouncing 1.7 percent.

National Australia Bank reversed early losses to gain 0.8 percent after saying its cash earnings will likely drop up to 14 percent for the recently ended financial year due to higher charges from its troubled UK business.

Leanne Jones, an equity analyst at Bell Securities said NAB still has strong capital, while investor sentiment was supported by its A$0.99 dividend.

Meanwhile, mid-tier Bank of Queensland Ltd (Other OTC: BKQNY - news) shot 2.8 percent higher after saying its full-year net profit from ordinary activities after tax is up 40 percent to A$260.5 million.

Elsewhere, Australian employment reportedly fell 29,700 in September, while the jobless rate ticked up to 6.1 percent.

The market gave a muted response, as there were doubts over the reliability of the data given problems with the seasonal adjustment process.

The benchmark index has been routed in recent sessions and tumbled 5.9 percent in September, pressured by a slump in iron ore prices, a rise in bond yields, and worries about slowing growth in Australia's largest export market, China.

"We've seen volatility continue this week," Jones said.

Iron ore for immediate delivery to China rose 1.4 percent to $80 a tonne on Tuesday, the highest since Sept. 19, while gold rose about 1 percent.

The materials sector led gains, adding 1.4 percent, with global miners BHP Billiton Ltd and Rio Tinto Ltd (Xetra: 855018 - news) rising 1.3 percent and 0.4 percent. Among gold producers Beadell Resources Ltd (Other OTC: BDREF - news) soared 9.4 percent.

Consumer cyclicals also ticked higher with News Corp adding 1.5 percent, whlie discount retailer the Reject Shop Ltd jumped 1.4 percent.

Mirvac Group climbed 2.5 percent to two-week highs of A$1.74 after acquiring Birkenhead Point shopping centre in Sydney in a deal for consideration of A$310 million.

New Zealand's benchmark NZX50 index rose 8.5 points, or 0.2 percent, to 5,254.48, tracking gains in global share markets.

New Zealand Refining rose 2.4 percent to NZ$1.70($1.34) after the company on Thursday said it would meet with unions next week to resolve labour issues after staff called off a strike earlier this week.

Xero slipped 0.8 percent to NZ$21.00, as early gains posted by the accounting software developer fizzled after it confirmed its forecast for subscription revenues to rise around 80 percent in 2015. (Editing by Kim Coghill)