Australia's economy avoided a second-straight drop in GDP

According to the Australian Bureau of Statistics the nation`s gross domestic product expanded by seasonally adjusted 0.4% in the first quarter, in comparison with a year ago and with the fourth quarter.

The first-quarter data were above economists' expectation for a fall of 0.1% on year and a climb of 0.1% quarter-over-quarter, according to a poll conducted by Dow Jones Newswires. 

The gain of Australia's S&P/ASX 200 made up 0.3% in Sydney. The Australian dollar also increased in value, with one Australian dollar buying 82.26 U.S. cents, which is up from the previous close of 82.07 U.S. cents. 

In addition, the bureau also changed forecasts for the fourth-quarter GDP reading to a contraction of 0.6% from a previously reported drop of 0.5%. The fourth-quarter slump was the first such contraction in eight years. 

On a seasonally adjusted basis, final consumption expenditure rose by 1.2% in the first quarter against the previous year, and was up 0.5% from the fourth quarter, data showed. 

The bureau said that growth on the expenditure side over the past four quarters was driven by household spending and by exports, offset by a fall in inventories.