By Roshan Thomas

July 17 (Reuters) -New Zealand shares rose to their highest level in more than two years on Wednesday, supported by expectations of rate cuts later this year after a softer-than-expected inflation reading, while Australian shares rebounded as miners and banks gained.

New Zealand's benchmark S&P/NZX 50 index .NZ50 climbed as much as 0.6% to 12,251.89 by 0035 GMT, hitting its highest level since early March 2022.

Data showed New Zealand inflation slowed to a three-year low in the second quarter, taking it close to the central bank's target band. Annual inflation was 3.3%, down from 4.0% in the first quarter, and below economist expectations of a 3.4% rate.

"The Q2 CPI data highlights that weak demand and increasing spare capacity across the economy is now flowing through to lower domestic inflation outcomes," analysts at ANZ said in a note.

"We have brought forward our forecast timing of the first 25bp cut in the official cash rate to November, rather than in February."

Among individual stocks, Synlait Milk SML.NZ dropped as much as 14.1% as the dairy producer withdrew its FY24 forecast citing year-end timing differences for manufacturing and shipping operations between July and August.

Meanwhile, Australia's S&P/ASX 200 .AXJO was up 0.5% at 8,036.5, rising for a fourth session in five.

Miners .AXMM gained 0.5% with Rio Tinto RIO.AX and Arcadium Lithium's Australia-listed shares LTM.AX up 0.1% and 6.7%, respectively.

Shares of BHP BHP.AX slipped 0.6%, even as the world's largest listed miner reported record annual iron ore production for a second consecutive year and beat analyst expectations for both its quarterly iron ore and copper production.

Financials .AXFJ gained 0.4%, with both National Australia Bank NAB.AX and ANZ Group ANZ.AX up more than 0.3%.

Technology stocks .AXIJ jumped 1.2% after the tech-heavy NASDAQ closed higher overnight.

Investors were awaiting the June unemployment report due on Thursday for cues on the Reserve Bank of Australia's monetary policy trajectory.

Reporting by Roshan Thomas in Bengaluru; Editing by Subhranshu Sahu

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