Australia's productivity could take years to turn around, as fresh data showed another fall and stronger economic growth lifted expectations of further interest rate rises.

Australian shares posted their first gain of the week as banks rebounded and bond market jitters eased, though ex-dividend drops in BHP, Woodside and Coles limited the rise.

Wall Street has rallied as investors curbed their rate hike bets after US Federal Reserve governor Christopher Waller said he would support holding the Fed funds target rate steady if data shows ...