* Weak jobs data continues to fuel rate cut hopes
* IOOF biggest gainer on Aussie index after court casedismissal
* Miners and energy stocks support benchmark
By Rashmi Ashok
Sept 23 (Reuters) - Australian shares rose on Monday,boosted by rising bets the central bank could cut interest ratesas early as October after weak jobs data last week sparkedexpectations of more stimulus.
The country's jobless rate worsened to a one-year high of5.3% in August, data showed on Thursday, raising the probabilitythe Reserve Bank of Australia may cut rates at its next policymeeting on Oct. 1.The S&P/ASX 200 index rose for a third straightsession, adding 32.8 points to 6,762.80 by 0139 GMT. Thebenchmark rose 0.2% on Friday.
"One of the big movers for the Aussie market has been thejob numbers coming through last Thursday basically liftingexpectations of the interest rate cut to be brought forward toOctober," said James Tao, market analyst at CommSec.
"The low interest rate environment generally fosters moreinvestment into equities and has helped give the Aussie market abit of a boost in the past few sessions," he added.
Further adding to the upbeat sentiment, the U.S. TradeRepresentative's office released a statement saying U.S. andChinese negotiators had held "productive" talks in Washington,fuelling hopes that both nations were making progress towards atrade deal.
Mining stocks logged firm gains, with iron oremajors Fortescue Metals Group and Rio Tintorising between 1% and 0.7%, respectively. Mining giant BHPinched slightly higher.
Financials also posted small gains, largely boostedby wealth manager IOOF Holdings, which racked up thebiggest gain on the index.
IOOF's stock jumped 9%, adding to Friday's substantial gainswhich came after a court ruled that the country's bankingwatchdog had not proved its case alleging that IOOF had breachedpension laws.
Specialty retailer Premier Investments was theindex's second-biggest gainer, adding 5.8%. The company defied aretail downturn in the country to post a surge in annual profit,with shares recording their best session in nearly 18 years onFriday.
A 1% jump in oil prices supported energy stocks,with Beach Energy adding 2.7%. Woodside Petroleum Ltd1.2% while Santos 0.6%.
Across the Tasman Sea, New Zealand's benchmark S&P/NZX 50index rose 0.3% or 30.76 points to 10,860.15.
Dairy giant a2 Milk Company Ltd rose 2.5%, whiletelco Spark New Zealand Ltd added 1.4%.
(Reporting by Rashmi Ashok and Shreya Mariam Job in Bengaluru;Editing by Jacqueline Wong)